IRCTC appoints legal advisory to conclude OFS
Indian Railway Catering & Tourism Corporation (IRCTC) announced that Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India has appointed Crawford Bayley & Co., as Legal Advisor for disinvestment of paid up equity capital of IRCTC through Offer For Sale (OFS).
Earlier, DIPAM had initiated the process to sell 15-20% stake in IRCTC through OFS in September 2020. The government had 87.40% stake in IRCTC as of June 30, 2020. To meet SEBI’S public holding norms, the government has to lower its stake in the company to 75%.
At the current market price, the government could raise about Rs 540 crore by selling 15% stake.
IRCTC is the only entity that is authorised by Indian Railways to provide catering services to railways, online railway ticketing and packaged drinking water at railway stations and trains in India. It was listed on stock exchanges on October 14, 2019, and it had raised Rs 645 crore through the IPO.
Last month, the catering services provider appointed merchant bankers IIFL Securities, HSBC Securities and Capital Markets (India), ICICI Securities and Axis Capital for a period of three years.
The government is looking to raise Rs 2.10 lakh crore through disinvestment in the current fiscal. This includes Rs 1.20 lakh crore from Central Public Sector Enterprise (CPSE) stake sale and Rs 90,000 crore from sale of government stake in financial institutions.
So far this fiscal, Rs 6,138 crore has been raised from selling minority stake in CPSEs as COVID-19 pandemic has delayed big ticket disinvestments like Bharat Petroleum Corporation (BPCL).
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