The government’s offer for sale (OFS) for Indian Railway Catering and Tourism Corporation (IRCTC) on Thursday received an overwhelming response from institutional investors, who put in bids worth Rs 3,775 crore, or 3.08 times of the portion earmarked for them.
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The floor price for the offer has been set at Rs 680 per equity share, at a discount of 7.4% to the closing price of Rs 734.7/share on the BSE on Wednesday. On Thursday, the firm’s stock price fell 6.19% to close at Rs 689.20/share. Only non-retail investors were allowed to place their bids on Thursday. As against their quota of 18 million shares out of the base offer size of 20 million, they put in bids for 55.5 million shares. Given the response from non-retail investors, the government has decided to exercise the option to retain another 20 million shares, taking the total offer size to 40 million shares or 5% equity in the company. The government would raise about Rs 2,720 crore from the IRCTC OFS. Retail investors as well as non-retail investors, who choose to carry forward their unallotted bids, can place their bids on Friday.