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Shares of IRCTC plunged over 8 per cent on Thursday after the company announced that the government will sell up to 20 per cent stake in the company through offer for sale (OFS).

Around 12 p.m., IRCTC shares on the BSE were trading at Rs 1,481.50, lower by Rs 136.55 or 8.44 per cent from its previous close.

Yash Gupta, Equity Research Associate with Angel Broking said that shares of the company fell as company announced OFS of up to 2.40 crore shares with option of additional sell of 0.8 lakh shares with floor price of Rs 1,367 per share.

Company has fixed OFS has cut-off date for non-retail investor December 10, 2020 and December 11 for retail investors. In a regulatory filing on Wednesday, the company 10 per cent of the OFS has been reserved for retail investors and 5 per cent reserved for the employees.

Company has fixed the floor price of Rs 1,367 for OFS which is 8.86 per cent lower than the CMP of Rs 1,500.