The federal government plans to promote about 15-20 per cent stake within the Indian Railway Catering and Tourism Corp (IRCTC) by a proposal on the market (OFS), and wish to full the transaction in a minimal variety of tranches. Final month, the Division of Funding and Public Asset Administration (DIPAM) had invited bids from service provider bankers by September 10 for managing the sale in Indian Railway Catering and Tourism Corp (IRCTC).
Nevertheless, it didn’t disclose the quantum of stake on provide within the Request for Proposal (RFP).
Following this, a pre-bid assembly was held on September four with potential bidders.
DIPAM has now posted its response to the queries raised by potential bidders on its web site.
To a question on meant stake dilution share, DIPAM mentioned, “The indicative share is 15 per cent to 20 per cent. The precise particulars shall be shared with the chosen service provider bankers.”
The federal government at the moment holds 87.40 per cent stake in IRCTC. To fulfill Sebi’s public holding norm, it has to decrease its stake within the firm to 75 per cent.
Shares of IRCTC on Tuesday closed 2.57 per cent decrease at Rs 1,378.05 on the BSE.
Requested if fee can be made by the federal government to service provider banker after completion of each single tranche or cumulatively after the completion of total transaction, DIPAM mentioned, “GOI wouldn’t prefer to have an OFS overhang and therefore wish to full the transaction in minimal variety of tranches as suggested by service provider bankers based mostly on market situations.
“In case a couple of tranche is used, pro-rata fee can be made to the service provider bankers”.
IRCTC, the one entity authorised by Indian Railways to supply catering providers to railways, on-line railway tickets and packaged consuming water at railway stations and trains in India, was listed on inventory exchanges in October 2019.
The corporate had raised Rs 645 crore by the IPO.
IRCTC OFS would assist the federal government inch ahead in direction of assembly the Rs 2.10 lakh crore disinvestment goal for ongoing fiscal.
Of this, Rs 1.20 lakh crore is to return from disinvestment of public sector undertakings and Rs 90,000 crore from stake sale in monetary establishments.
The federal government offered about 15 per cent stake in defence producer Hindustan Aeronautics (HAL) by way of OFS to boost round Rs 5,000 crore final month.
The Rs 900-crore OFS of Bharat Dynamics is underway, with institutional investor portion over-subscribed on Tuesday.
Nevertheless, DIPAM has not been in a position to promote strategic stake in any CPSE to this point within the present fiscal because the coronavirus outbreak has impacted fairness markets.
The federal government, nonetheless, has garnered subscription value Rs 11,000 crore for ‘AAA’ rated bonds of CPSEs by Bharat Bond ETF-II.
The federal government can be launching preliminary public providing (IPO) of Indian Railway Finance Corp Ltd (IRFC), and had filed draft crimson herring prospectus (DRHP) with the Securities and Change Board of India in January for IPO of over 140 crore fairness shares.
The Union Cupboard had in April 2017 authorized itemizing of 5 railway corporations.
Whereas 4 of them — IRCON Worldwide Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRCTC — have already been listed, IRFC is prone to be placed on block this fiscal.
(With PTI Inputs)