Post-privatisation (2014–2024)
Share prices rose by 38% on the first day of conditional trading, leading to accusations that the company had been undervalued.[13] Six months later, the market price was 58% more than the sale price, and peaked as high as 87%. Business Secretary Vince Cable defended the low sale price that was finalised, saying that the threat of strike action around the time of the sale meant it was a fair price in the circumstances, following questioning from the House of Commons Business Committee in late April 2014. On behalf of both himself and Business Minister Michael Fallon, Cable stated before the committee: "We don't apologise for it and we don't regret it."[23]
Cable was required to respond to the sale price issue again on 11 July 2014 after a report was published on that date by the Business, Innovation and Skills (BIS) Committee. Chaired by MP Adrian Bailey, the report concluded:
It is clear that the Government met its objectives in terms of delivering a privatised Royal Mail with an employee share scheme. However, it is not clear whether value for money was achieved and whether Ministers obtained the appropriate return to the taxpayer. We agree with the National Audit Office that the Government met its primary objective. On the basis of the performance of the share price to date, it appears that the taxpayer has missed out on significant value.[24]
The report also concluded that the "Government over-emphasised the risk" in regard to the industrial relations between the government and the CWU, with the BIS Committee referring to the Royal Mail share price before, during and after the finalisation of the pay deal with the union.[24] During the presentation of the report, Bailey referred to the underpinning factors of "fear of failure and poor quality advice", and warned that British taxpayers could sustain further losses in the future due to the inclusion of Royal Mail's 'surplus' assets as part of "the most significant privatisation in years". The BIS Committee called on the UK government to publish a list of the preferred investors involved in the sale, including the details of those investors who sold their shareholding.[25] Billy Hayes, general secretary of the CWU, also responded to the BIS report: "The BIS select committee's damning report published today shows the extent of the government's incompetence in the privatisation of Royal Mail."[26]
In 2014, the London Assembly voted to call for the renationalisation of Royal Mail.[27][28]
On 4 June 2015, the Chancellor of the Exchequer, George Osborne, announced that the government would sell its remaining 30% stake.[29] A 15% stake was subsequently sold to investors on 11 June 2015, raising £750m, with a further 1% passed to the company's employees.[30] The government completed the disposal of its shareholding on 12 October 2015, when a 13% stake was sold for £591m and another 1% was given to employees. In total the government raised £3.3bn from the full privatisation of Royal Mail.[31]
On 13 January 2020, Royal Mail shares were trading below the issue price, as they did throughout all of 2019.[32]
On 1 June 2022, it was announced that the company would be demoted from the FTSE 100, and became a constituent of the FTSE 250 Index on 20 June.[33]
In July 2022, it was announced that the holding company responsible for both Royal Mail and GLS would change its name to International Distributions Services (IDS). The name change was filed with Companies House on 28 September 2022 and registered on 3 October.[34]
