New Delhi, September 8
The authorities plans to promote about 15-20 per cent stake in IRCTC through provide on the market (OFS) and want to full the transaction in minimal variety of tranches.
Last month, the Department of Investment and Public Asset Management (DIPAM) had invited bids from service provider bankers by September 10 for managing the sale in Indian Railway Catering and Tourism Corp (IRCTC).
However, it didn’t disclose the quantum of stake on provide within the Request for Proposal (RFP).
Following this, a pre-bid assembly was held on September four with potential bidders.
DIPAM has now posted its response to the queries raised by potential bidders on its web site.
To a question on meant stake dilution proportion, DIPAM mentioned, “The indicative percentage is 15 per cent to 20 per cent. The exact details will be shared with the selected merchant bankers.”
The authorities presently holds 87.40 per cent stake in IRCTC. To meet Sebi’s public holding norm, it has to decrease its stake within the firm to 75 per cent.
Shares of IRCTC on Tuesday closed 2.57 per cent decrease at Rs 1,378.05 on the BSE.
Asked if fee can be made by the federal government to service provider banker after completion of each single tranche or cumulatively after the completion of whole transaction, DIPAM mentioned, “GOI wouldn’t prefer to have an OFS overhang and therefore want to full the transaction in minimal variety of tranches as suggested by service provider bankers primarily based on market circumstances.
“In case more than one tranche is used, pro-rata payment would be made to the merchant bankers”.
IRCTC, the one entity authorised by Indian Railways to offer catering companies to railways, on-line railway tickets and packaged ingesting water at railway stations and trains in India, was listed on inventory exchanges in October 2019.
The firm had raised Rs 645 crore by means of the IPO.
IRCTC OFS would assist the federal government inch ahead in the direction of assembly the Rs 2.10 lakh crore disinvestment goal for ongoing fiscal.
Of this, Rs 1.20 lakh crore is to come back from disinvestment of public sector undertakings and Rs 90,000 crore from stake sale in monetary establishments.
The authorities bought about 15 per cent stake in defence producer Hindustan Aeronautics (HAL) through OFS to lift round Rs 5,000 crore final month.
The Rs 900-crore OFS of Bharat Dynamics is underway, with institutional investor portion over-subscribed on Tuesday.
However, DIPAM has not been in a position to promote strategic stake in any CPSE to date within the present fiscal because the coronavirus outbreak has impacted fairness markets.
The authorities, nevertheless, has garnered subscription value Rs 11,000 crore for ‘AAA’ rated bonds of CPSEs by means of Bharat Bond ETF-II.
The authorities can be launching preliminary public providing (IPO) of Indian Railway Finance Corp Ltd (IRFC), and had filed draft pink herring prospectus (DRHP) with the Securities and Exchange Board of India in January for IPO of over 140 crore fairness shares.
The Union Cabinet had in April 2017 permitted itemizing of 5 railway firms.
While 4 of them—IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRCTC—have already been listed, IRFC is prone to be placed on block this fiscal. PTI