The government is planning is to launch the initial public offering (IPO) of the state-run Indian Railway Catering and Tourism Corp Ltd (IRCTC) on September 30.
According to LiveMint, government has already filed IRCTC's draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) in August this year. The proposed IPO is expected to see the government sell stake worth Rs 480 crore through an offer for sale, said a person aware of the development. IRCTC is expected to announce the IPO price band on Wednesday.
It was earlier reported that the government is looking to offload up to 20 million shares in the company through the IRCTC IPO, which will help in raising Rs 500-600 crore. The IPO is likely to cut the government’s stake in IRCTC by about 12.5%.
IRCTC’s business is divided into four segments—internet ticketing, catering, packaged drinking water under the ‘Rail Neer’ brand, and travel and tourism. Its sales rose 25% to Rs 1,899 crore, profit grew 23.5% to Rs 272.5 crore in fiscal 2019 over the previous year, its draft red herring prospectus filed with regulators in August said.
