With an aim to raise capital, Indian Railway Catering and Tourism Corporation (IRCTC) has filed draft papers for its initial public offer (IPO), news agency PTI reported. The tourism and catering arm of the Indian railways may offload nearly 2 crore shares of face value of Rs 10 each through the public offering, the report added. The IPO is expected to be worth nearly Rs 500-600 crore, PTI reported citing unidentified sources.
The managers to the offer include IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India). According to the draft red herring prospectus (DRHP), IRCTC is the only entity authorised by the Indian railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains across the country. IRCTC shares are proposed to be listed on BSE and NSE.
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Finance Minister Nirmala Sitharaman had, in her budget speech in July, said that the government has set a target of Rs 1,05,000 crore as income from disinvestment in public enterprises for FY20. The Modi government has collected Rs 12,357.49 crore from disinvestment so far in this financial year, DIPAM data showed.
Meanwhile, benchmark equity index Sensex plummeted 587 points on Thursday, pressured by heavy selling in banking and energy stocks amid weak global cues. The 30-share Sensex sank 587.44 points, or 1.59 per cent, to 36,472.93. It hit an intraday low of 36,391.35 and a high of 37,087.58. The broader NSE Nifty ended 177.35 points, or 1.62 per cent, down at 10,741.35. During the day, it plunged to a low of 10,718.30 and touched a high of 10,908.25.