The shares of IRCTC, the monopoly provider of ticket booking and catering services for the Indian Railways, are not doing well these days. Its share price has come down by 5 percent.
The reason behind this is the recent announcement by the Center to sell 5 percent stake. As soon as this news came, the shares of IRCTC have seen a decline
Let us tell you that these 5 percent shares are being brought under Offer for Sale (OFS) by the Center and a total of 4 crore equity shares will be offered for sale to investors. It is worth noting that its market valuation is around 56,076 crore rupees.
Due to the news of the sale of shares, there has been a huge drop in demand for IRCTC shares. Shares of IRCTC traded down 34.25 points or 4.66% at Rs 700.45 at around 10.11 am.
The stock was thus at its intra-day low of Rs 696.70. Just a day before this, the price of its shares was Rs 734.70.
Non-retail investors will be allowed to bid under the OFS on December 15 and investors can place or revise their bids till December 16. A minimum of 25% of OFS is reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price.