The government plans to sell 15-20 per cent stake in IRCTC through Offer for Sale (OFS). It is believed that this transaction will be completed in at least installments. Last month itself, the Department of Investment and Public Asset Management (DIPAM) had invited bids from merchant bankers to manage the stake sale in the Indian Railway Catering and Tourism Corporation (IRCTC) by 10 September.
Explain that at least 25 per cent of the shares in the offer for sales are safe for institutional investors such as mutual funds and insurance companies. The government currently holds 87.40 per cent stake in IRCTC. The government is reducing its stake in the company to 75 per cent to comply with SEBI’s public holding norm.
A pre-bid meeting was held on September 4 with prospective bidders regarding stake sale in IRCTC. DIPAM has now posted its response to the website on queries placed by potential bidders. Regarding the query in the case of integrated stake dilution percentage, DIPAM said that the indicative percentage is 15 to 20 percent. Exact details will be shared with select merchant bankers.