IRCTC shares fell sharply around 8 per cent on Thursday after the company announced that the government will sell up to 20 per cent stake in the company through offer for sale (OFS).
Around 01.18 p.m., IRCTC shares on the BSE were trading at Rs 1,498, lower by Rs 120.05 or 7.42 per cent from its previous close.
The government, which holds 87.40 per cent stake in IRCTC, proposes to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 80,00,000 shares, representing 5 per cent of the total issued and paid up equity share capital, the company said in a regulatory filing.
The floor price for the offer has been fixed at Rs 1,367, it said. Shares of IRCTC on Wednesday closed at Rs 1,618.05 apiece on the BSE.
Yash Gupta, Equity Research Associate with Angel Broking said that shares of the company fell as company announced OFS of up to 2.40 crore shares with option of additional sell of 0.8 lakh shares with floor price of Rs 1,367 per share.
Company has fixed OFS has cut-off date for non-retail investor December 10, 2020 and December 11 for retail investors. In a regulatory filing on Wednesday, the company 10 per cent of the OFS has been reserved for retail investors and 5 per cent reserved for the employees.