Govt to sell 15-20% stake in IRCTC via OFS

The government plans to sell about 15-20 per cent stake in IRCTC via offer for sale (OFS) and would like to complete the transaction in minimum number of tranches.
The Department of Investment and Public Asset Management (DIPAM) had invited bids from merchant bankers by September 10 for managing the sale in Indian Railway Catering and Tourism Corp (IRCTC).
The government currently holds 87.40 per cent stake in IRCTC. To meet Sebi's public holding norm, it has to lower its stake in the company to 75 per cent.
IRCTC, the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India, was listed on stock exchanges in October 2019.
The company had raised Rs 645 crore through the IPO.
IRCTC OFS would help the government inch forward towards meeting the Rs 2.10 lakh crore disinvestment target for ongoing fiscal.
The government is also looking at launching initial public offering (IPO) of Indian Railway Finance Corp Ltd (IRFC), and had filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India in January for IPO of over 140 crore equity shares.
The Union Cabinet had in April 2017 approved listing of five railway companies.
While four of them -- IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRCTC -- have already been listed, IRFC is likely to be put on this fiscal.