The sale of the federal government’s as much as 5 per cent stake in IRCTC bought over-subscribed on the primary day of the supply, with institutional traders placing in bids price Rs 3,800 crore.
Within the two-day offer-for-sale (OFS), the federal government is promoting 4 crore shares or 5 per cent stake in Indian Railway Catering and Tourism Company (IRCTC) at a ground value of Rs 680 a share. The OFS consists of a base subject dimension of two crore shares or 2.5 per cent stake, with an choice to retain over-subscription of the same quantity.
As a lot as 10 per cent of the difficulty is reserved for retail traders, for whom bidding would open on Friday.
On Thursday, bids for over 5.55 crore shares, representing 3.08 occasions the bottom subject dimension of 1.80 crore shares had been put in by institutional traders. Calculated on the premise of the ground value, the bids can be valued at about Rs 3,800 crore.
Shares of IRCTC settled at Rs 689.20 apiece, down 6.19 per cent over the earlier shut on the BSE. In the course of the day, the scrip touched a low of Rs 687, however held above the OFS ground value of Rs 680.
The ground value was at a reduction of seven per cent over Wednesday’s closing value of Rs 734.70. The federal government holds 67.40 per cent stake in IRCTC.
Proceeds from IRCTC OFS will add to the disinvestment kitty of the federal government, which has already raised Rs 28,383 crore from CPSE stake sale to date this fiscal yr in opposition to the total yr funds goal of Rs 65,000 crore.