IRCTC OFS price, date: Offer subscription for retail investors opens today - details | IRCTC Share Price NSE, BSE

IRCTC Share Price, IRCTC OFS Price, Date, News, Retail Investors Subscription: The sale of government's up to 5 per cent stake in Indian Railway Catering & Tourism Corporation (IRCTC) got over-subscribed on the first day of the offer by non-retail investors. The institutional investors placed bids worth Rs 3,800 crore.

The OFS for retail investors opened today with the government expecting an overwhelming response, making way for exercising the greenshoe option.

In the two-day OFS, the government is selling 4 crore shares or 5 per cent stake in IRCTC at a floor price of Rs 680 a share. The OFS consists of base issue size of 2 crore shares or 2.5 per cent stake, with an option to retain over-subscription of similar amount.

As much as 10 per cent of the issue is reserved for retail investors.

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IRCTC is the tourism and catering arm of the Indian Railways. At present, the government owns 67.4 per cent stake in IRCTC.

What is Greenshoe Option

Greenshoe option provides a company with a choice of over-allotment of shares, which helps to raise additional capital when there is a higher-than-expected demand.

According to Zee Business panellist Siddarth Sedani, the last OFS in 2020 had also received a good response. He said that the view on IRCTC is fundamentally weak for the time being. The factor playing behind this is the looming uncertainty of the government's decision on sharing the convenience fee. He, however, added that the Indian Railways stocks are in focus ahead of the Budget.

Earlier in December 2020, the government had launched OFS in IRCTC at the floor price of Rs 1367 and the allotment price was Rs 1377.55 apiece, before a stock split.

IRCTC OFS Apply

Retail investors can apply for IRCTC OFS through their Demat account. Brokers offer options in their apps and websites to place bids.

IRCTC Share Price NSE, BSE

Shares of IRCTC have tanked more than 8 per cent in the past 2 sessions. On Thursday, the stock settled at Rs 689.20 apiece, down 6.19 per cent on the BSE. At 10:58 AM today, the counter traded nearly 3 per cent lower at Rs 668.40 on NSE and Rs 672.25 on BSE.

According to a PTI report, proceeds from IRCTC OFS will add to the disinvestment kitty of the government, which has already raised Rs 28,383 crore from CPSE stake sale so far this fiscal year against the full year budget target of Rs 65,000 crore.

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