Indian Railway Catering and Tourism Corporation’s (IRCTC) offer for sale (OFS) has been oversubscribed 1.98 times by the institutional buyers on the first day.
The over-subscription is for the 2.4 crore equity shares of IRCTC (representing 15 per cent of total shares issued and paid-up equity share capital of the company) that were on offer on Thursday for the non-retail investors only. With the over subscription, the Centre will exercise the green shoe option to sell additional 80 lakh shares (or five per cent stake), IRCTC said in a notice to the stock exchanges.
The Government had set the floor price for the offer at ₹1,367 per share. The offer will open on Friday for retail investors and non-retail investors who choose to carry forward their un-allotted bids.
At present, government holds 87.4 per cent stake in the ₹2,275 crore public sector enterprise.
For the quarter-ended September 2020, the company reported a revenue of ₹88.56 crore with a net profit of ₹32.64 crore.
On Thursday, IRCTC shares closed at ₹1,433 on the NSE, down 11 per cent against the previous close