The Indian Railway Catering and Tourism Corporation (IRCTC) shares went down by 5% to Rs 696.70 after the government fixed a floor price of Rs 680 per share for its stake sale in the tour and travel-related services company via offer for sale (OFS).

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On December 15, the OFS for non-retail investors opened to retail investors. The floor price for the OFS was set at a 7.4% discount to the closing price of Rs 734.70 on December 14 2022. The GOI held a stake in IRCTC at 67.4%.

The proposed share sale will consist of up to 20 million shares of IRCTC, representing 2.5% of the total issued and paid-up share capital, with an option to sell a further 20 million shares (representing 2.5% of the paid-up capital of IRCTC, subject to the following oversubscription), the company said in a regulatory filing on Wednesday.

At least 25% of OFS shares will be reserved for mutual funds and insurance companies. The remaining 10% will be reserved for retail investors.

bIn the morning trade, IRCTC traded 4.6% lower at Rs 701.15 compared to 0.22% lower in the S&P BSE Sensex.