25-Apr-2024Today's Market Indicators


Govt appoints legal advisor for proposed OFS in IRCTC
(16:09, 23 Nov 2020)

In August 2020, the Government of India (GoI) announced plan to pare its stake in the company. The Department for Investment and Public Asset Management (DIPAM) had issued an official Request for Proposal (RFO) inviting bids from merchant bankers for managing the sale process.

The GoI intends to disinvest a part of the paid up equity capital of IRCTC out of its shareholding through 'Offer for Sale' (OFS) method of shares by promoters through the stock exchanges as per Securities and Exchange Board of India (SEBI) Rules and Regulations, DIPAM had said in a statement.

IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water and travel & tourism.

The Government of India held 87.4% stake in IRCTC as of 30 September 2020.

IRCTC posted a 67.3% decline in net profit to Rs 32.63 crore in Q2 September 2020 from Rs 99.82 crore in Q2 September 2019. The company's total revenue declined nearly 80% to Rs 108.72 crore in Q2 September 2020 from Rs 535.13 crore in Q2 September 2019.

The scrip fell 1.33% to Rs 1361.65 today. It traded in the range of 1357.45 and 1371.85 during the day.

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