New Delhi, August 21
The Central Government is planning to promote a part of its shares within the Indian Railway Catering and Tourism Corp (IRCTC) via a suggestion on the market (OFS).
In a Request for Proposal, the Department of Investment and Public Asset Management (DIPAM) has invited proposals from service provider bankers registered with the SEBI, by September 10, for managing the sale course of.
“The GoI intends to disinvest a part of the paid-up equity capital of the IRCTC out of its shareholding through ‘Offer for Sale’ (OFS) method of shares by promoters through the stock exchanges as per the Securities and Exchange Board of India (SEBI) Rules and Regulations,” the tender doc issued on Thursday stated.
It additional stated the federal government was additionally contemplating allotting shares to eligible and keen workers of the IRCTC at a reduction to the problem or found value — lowest lower off value — as much as a most of a sure share of the OFS dimension, subsequent to completion of the transaction below OFS. The share and extent could be determined sooner or later, stated the doc.
The service provider banker will probably be required to undertake duties associated to all points of the OFS, together with advising the federal government on the timing and the modalities of the OFS. It can even put together the discover to be filed with the inventory trade and full all stipulated necessities and formalities of the regulatory and statutory authorities.
“Proposals under the guidelines are invited from reputed Category-I Merchant Bankers registered as such with the SEBI and having a valid license as a stockbroker in their name or in the name of their associate; either singly or as a consortium; with experience and expertise in public offerings in the capital; to act as Merchant Banker and to assist and advise the Government in the process,” it stated.
The broking license is required to be legitimate till the completion of all actions referring to the OFS. Additionally, the Merchant Banker(s) or their associates could be required to behave as “Selling Broker” for the proposed OFS.
Bidders ought to have dealt with and accomplished not less than one home fairness difficulty — Initial Public Offering or Further Public Offering or OFS — of the dimensions of Rs 1,000 crore or extra in the course of the interval from April 1, 2017, to June 30, 2020.
The authorised capital of the corporate is Rs 250 crore and paid-up capital is Rs 160 crore. As on date, the Ministry of Railways holds 87.40 per cent of the paid-up share capital of the corporate amounting to over 13.98 crore shares.
At 2.27 pm, the IRCTC shares on the BSE have been buying and selling at Rs 1,351.65, increased by Rs 5 or 0.37 per cent from the earlier shut. IANS