On Thursday morning, when the sale of the government for up to 5 per cent stake in IRCTC began, IRCTC Share Price dropped more than 6 per cent on the BSE. Thursday marked the beginning of the government’s offer-for-sale (OFS) of up to a 5% share in the Indian Railway Catering and Tourism Corporation (IRCTC) at a base price of Rs 680 per share for institutional investors. The government currently owns 67.4% shares of the company.
IRCTC Share Price before the Sale
At 10 a.m., IRCTC shares were trading at Rs 701 on the NSE and went down by Rs 33.70, or 4.59 per cent. Approximately 42 million shares were available on the NSE at this time.
Nilesh Jain, a technical analyst, stated that IRCTC stock has been moving sideways and the current chart structure does not indicate a strong trend. He added that the stock has been inactive for the past five to six months.
The IRCTC Share Price reached its 52-week high of Rs 918.65 on January 17, 2022, and its 52-week low of Rs 557 over the course of six months.
What Is Government OFS
The OFS (offer-for-sale) includes a base offer size of 2 million shares or 2.5% stake, with an option to retain an over-subscription of an additional 2.5%, bringing the maximum issue size to 4 million shares or 5% stake. Bids for more than 8.75 lakh shares were received by 11:25 a.m., which is approximately 0.05 times the base offer size of 2 crore shares.
According to NSE statistics, the indicted bidder price is Rs 683.87 per share. Thursday’s closing price was lower than Wednesday’s closing price of Rs 734.70. The OFS floor price of Rs 680 is discounted by nearly 7% compared to Wednesday’s closing price. The share price on Thursday opened at Rs 698.95 and dropped to Rs 687.15 till closing.
Is It a Good Time To Invest?
Jain stated that the current levels provide an excellent entry point for long-term investors. Strong support exists between Rs 680 and Rs 670. This stock could be purchased at Rs 685 with a stop loss of Rs 665. Traders are recommended to wait for a better risk-to-reward ratio. In the December series, the IRCTC Share Price might reach a price between Rs 720 and Rs 740.
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