Strong institutional response for IRCTC OFS; offer oversubscribed

The government’s offer for sale (OFS) of shares in Indian Railway Catering and Tourism Corp received an overwhelming response from institutional investors on Thursday, making way for the Centre to use the greenshoe option.

The government received bids for 5,55,10,454 shares in the OFS from institutional investors against the offer size of 1,80,00,000 for the category. This gave the government an opportunity to use the greenshoe option of 1,80,00,000 additional shares.

The 7% discount offered in the OFS drove the strong demand for the stock. The floor price for the OFS was set at Rs 680 a share. Shares of the company ended 6.2% down at Rs 689.05 on the National Stock Exchange.


Given the steep discount in the OFS, traders dumped it in the open market to subscribe to it. The OFS will open for retail investors on Friday, when institutional investors too, can place their bids.

The government has reserved 10% of the OFS for retail investors.

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