Govt plans further stake sale in IRCTC

New Delhi, August 20

The government is planning to sell part of its stake in Indian Railway Catering and Tourism Corp (IRCTC) in the current fiscal, and has invited bids from merchant bankers for managing the sale process. “The GoI intends to disinvest a part of the paid-up equity capital of IRCTC out of its shareholding through ‘Offer for Sale method of shares by promoters through the stock exchanges’ as per SEBI Rules and Regulations,” DIPAM said while inviting Request for Proposal.

Current shareholding 87.40%

• The government currently holds 87.40% stake in IRCTC. To meet SEBI’s public holding norm, the government has to lower its stake in the company to 75%
• IRCTC’s Offer for Sale will help the government inch forward in meeting the Rs2.10 lakh-crore disinvestment target
• Of this, Rs1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs90,000 crore from stake sale in financial institutions

The merchant bankers will have to submit their bids by September 10. IRCTC was listed on the stock exchanges in October 2019. The company had raised Rs 645 crore through the IPO.

IRCTC OFS will help the government inch forward in meeting the Rs 2.10 lakh-crore disinvestment target. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions. — PTI