Inheritance tax could nullify the progress India made in last 10 years: Nirmala Sitharaman
The finance minister criticised the Congress party for allegedly advocating the inheritance tax.
State-owned Indian Railway Catering and Tourism Corporation (IRCTC) which manages ticket booking, tourism and catering for Indian Railways, on Wednesday said it would launch its initial public offer (IPO) at Rs 315-320 per share on Monday.
The IPO is set to open for subscription on September 30 and will close on October 3. The issue comprises an offer for sale of 2,01,60,000 shares and is a part of the government’s divestment process. As it is an offer for sale issue, the company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder.
There would also be additional employee reservation portion of 1.6 lakh shares, taking the total offer size to 12.6 percent of total paid-up equity. The government intends to raise Rs 635.04-645.12 crore at the aforementioned price band.
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The minimum bid lot is 40 equity shares and in multiples of 40 equity shares thereafter. The retail investors and employees will get shares at a discount of Rs 10 per share to final offer price.
IDBI Capital Markets & Securities, SBI Capital Markets and Yes Securities (India) are books running lead managers to the issue. The stake sale in IRCTC is a part of the government’s full-year divestment programme set in Budget 2019.
In July, Finance Minister Nirmala Sitharaman had set a disinvestment target of Rs 1.05 lakh crore for FY20, up from Piyush Goyal’s interim Budget target of Rs 90,000 crore. The IRCTC IPO is part of the same disinvestment programme.
In April, another railway entity Rail Vikas Nigam (RVNL) was listed. The government had raised about Rs 480 crore via the 12.2 percent stake sale in RVNL.
IRCTC operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 15 to 18 million transactions per month during the three months ended June 30, 2019.
(With input from agencies)
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