Privatisation of IRCTC: Indian Railway Catering and Tourism Corporation ie IRCTC is also preparing for privatization. According to the CNBC Awaaz report, the government can sell its stake in IRCTC through the offer of sales. For this, bids have been called for the appointment of merchant bankers and selling bankers by the Department of Disinvestment. According to reports, a high-level meeting may be held on September 3 for this. Currently, the government holds more than 80 per cent stake in IRCTC.
Since this news, the stock of IRCTC has fallen by more than 2 percent today. Today the stock fell to Rs. 1332, while it closed at Rs. 1362 on Wednesday. The 52-week high of the stock is Rs 1994. Explain that under the offer of sales, an existing company can sell its shares only through the exchange platform. At least 25 per cent of the shares in the offer of sales are safe for institutional investors like mutual funds and insurance companies. The bidding process can begin from 11 September.
IPO got great response
IRCTC launched its IPO in October 2019. For retail investors and employees, these shares were offered at a discount of Rs 10 for Rs 310, while the issue price was Rs 320 for the rest of the investors. The IPO listing was more than double the issue price at Rs 644. The government had accumulated around Rs 645 crore through an IPO and sold a 12.6 per cent stake.
IRCTC is a subsidiary of Indian Railways. IRCTC is also in the catering business apart from booking tickets. Private trains are also operated by the company in the country. IRCTC sells bottled water. About 2.5-2.8 crore tickets are sold every month through the IRCTC website.
What is OFS?
OFS is called Offer for Sale. Promoters of listed companies in the stock market use it to reduce their stake. According to Sebi rules, whichever company wants to issue OFS, it has to inform the SEBI as well as NSE and BSE two days before the issue. After this, investors can get involved in this process by giving information to the exchange. Investors have to provide information about the price at which they want to buy shares. The investor files his bid. After that the proposals for the total bids are calculated and this shows how much the issue has been subscribed. After this, when the process is complete, allotment of stocks occurs.
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
Business Plan: How To Write a Business Plan For Any Business?