The government is preparing to sell some of its stake in Indian Railway Catering and Tourism Corp (IRCTC) during the current fiscal year and has asked dealer bankers for offers to manage the sales process.
The merchant bankers will have to submit their bids by September 10.
The pre-bid meeting for the stake sale will be held on September 3, while bids will have to be submitted from September 4-10.
The bidding process will begin on September 11.
“The GoI intends to disinvest a part of the paid up equity capital of IRCTC out of its shareholding through ‘Offer for Sale (OFS) method of shares by promoters through the stock exchanges’ as per Securities and Exchange Board of India (Sebi) Rules and Regulations,” DIPAM said while inviting Request for Proposal (RFP).
The government currently holds 87.40% stake in IRCTC. To meet Sebi’s public holding norm, the government has to lower its stake in the company to 75%.
IRCTC is a Central Public Sector Enterprise (CPSE) and the only Indian Railways authorized company to serve stations, online train tickets and packaged drinking water at stations and trains in India. The company had raised ₹645 crore through the IPO.
The government is also considering the initial public offering of Indian Railway Finance Corp. (IRFC) and filed a draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India in January for the initial public offering of over 140 Crore shares, according to a report.
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