IRCTC shares drop 5% as govt announces stake sale via OFS

IRCTC, the provider of catering services for Indian Railways, saw its shares plummet on Thursday as the government’s offer for sale opened to institutional buyers. The Center has stated that it will sell a 5% interest through OFS. Investors will have the opportunity to purchase 4 crore equity shares in total. IRCTC stock fell significantly after that, dropping more than 5%. Currently, the stock was trading close to the day’s low.

IRCTC shares traded at 700.45 per share at around 10.11 am, down 34.25 or 4.66%. The share price was close to its day’s low of $696.70 per unit. The market value of it is approximately 56,076 crore.

IRCTC shares were trading at $734.70 per share on the exchange the day before.

According to the regulatory filing, on December 15 the government will sell 2 crore equity shares, or 2.5% of the firm, to non-retail investors as part of the base offer. Additionally, it would sell 2 crore equity shares, or 2.5% of IRCTC, to retail investors.