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Government To Sell 2.5% Stake In IRCTC Via OFS Route

The OFS floor price is at a discount of 7.45% against the closing price of IRCTC share on Wednesday, which is Rs 734.70.

<div class="paragraphs"><p>Indian Railways train. (Source: PIB)</p></div>
Indian Railways train. (Source: PIB)

The central government will sell 2.5% of its stake in Indian Railways Catering and Tourism Corp. Ltd. through an offer for sale issue.

The OFS will see the government offload 2 crore shares of the Indian Railways' ticketing arm, at an offer price of Rs 680 per share, the company said in an exchange filing on Wednesday.

The OFS floor price is at a discount of 7.45% to the IRCTC closing price of 734.70 on Wednesday. At the current level, the 2.5% stake is valued at about Rs 1,470 crore.

The OFS will open on Dec. 15 for non-retail investors, and for retail investors on Dec. 16.

Non-retail investors, who placed their bids on the first day and chose to carry them forward to the second day, shall be allowed to do so and also revise their bids as per the OFS guidelines, the IRCTC said.

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The issue will also have the option to sell up to 2 crore additional shares in the event of oversubscription, taking the total offer size to 5% of IRCTC's total shareholding.

IRCTC will reserve 25% of the offer size for mutual funds and insurance companies. It will also reserve 10% of the offering for retail investors, who can place bids for shares aggregating up to Rs 2 lakh.

Shares representing 0.5% of IRCTC's total shareholding, over and above the offer shares, may be offered to eligible employees after completion of the offer, the company said. Eligible employees may apply for equity shares worth up to Rs 5 lakh.

However, any bids by eligible employees will be considered for allocation, in the first instance, for an amount up to Rs 2 lakh, IRCTC said.

The offer for sale will be executed through a separate, designated window of the BSE Ltd. and National Stock Exchange of India Ltd.

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