Govt plans additional stake sale in IRCTC, invitations bids from service provider bankers by September 10

New Delhi, August 20

The authorities is planning to promote a part of its stake in Indian Railway Catering and Tourism Corp (IRCTC) within the present fiscal, and has invited bids from service provider bankers for managing the sale course of.   

“The GoI intends to disinvest a part of the paid up equity capital of IRCTC out of its shareholding through ‘Offer for Sale (OFS) method of shares by promoters through the stock exchanges’ as per Securities and Exchange Board of India (Sebi) Rules and Regulations,” DIPAM mentioned whereas inviting Request for Proposal (RFP).

The service provider bankers should submit their bids by September 10.

The authorities at present holds 87.40 per cent stake in IRCTC.

To meet Sebi’s public holding norm, the federal government has to decrease its stake within the firm to 75 per cent.

Shares of IRCTC closed at Rs 1,346.65 apiece on the BSE, down 1.20 per cent over its earlier shut.

IRCTC, the one entity authorised by Indian Railways to offer catering companies to railways, on-line railway tickets and packaged consuming water at railway stations and trains in India, was on the inventory exchanges in October 2019. The firm had raised Rs 645 crore via the IPO.

IRCTC OFS will assist the federal government inch ahead in assembly the Rs 2.10 lakh crore disinvestment goal. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and one other Rs 90,000 crore from stake sale in monetary establishments.

So far within the present fiscal, the Department of Investment and Public Asset Management (DIPAM) has not been capable of promote stake in any CPSE because the coronavirus outbreak has impacted fairness markets.

However, via Bharat Bond ETF-II, the federal government has garnered subscription price Rs 11,000 crore for ‘AAA’ rated bonds of CPSEs.

DIPAM Secretary Tuhin Kanta Pandey had final month mentioned restrictions on worldwide journey attributable to COVID-19 pandemic have put brakes on strategic disinvestment of CPSEs, like Air India and BPCL, however finishing the transactions stays a precedence of the federal government.

DIPAM, which manages the CPSE stake sale course of, has additionally set into movement the method of itemizing of the nation’s largest insurer Life Insurance Corporation (LIC) and appointed pre-IPO transaction advisor.

The authorities is taking a look at itemizing the insurer on home bourses within the January-March quarter of the present fiscal.

The authorities can also be taking a look at launching preliminary public providing (IPO) of Indian Railway Finance Corp Ltd (IRFC) and had in January filed draft pink herring prospectus (DRHP) with the Securities and Exchange Board of India for IPO of over 140 crore fairness shares.

The Union Cabinet had in April 2017 authorised itemizing of 5 railway corporations. While 4 of them—IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRTC—have already been listed, IRFC is more likely to be placed on the block this fiscal. PTI

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