IRCTC - Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the "Rail Neer" brand, and travel and tourism. Entire business of the Company is disrupted due to Covid-19. Although, we believe long term fundamentals are intact. Currently, the Government of India holds 87.4% in IRCTC. As per SEBI Minimum Public Shareholding requirement, promoters can hold maximum 75% in the Company. So to comply with SEBI regulation, as per media reports Government is planning to sell 15-20% in the Company in the minimum number of tranches. Amount raised from OFS will help the Government in managing the fiscal deficit in these unprecedented times of covid-19. We believe there could be short term pressure in the stock price if the Government will announce OFS as free float will increase in the market."

Source : Equity Bulls

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