The initial public offer (IPO) by state-run IRCTC fully subscribed on October 1, Day 2 amid retail investors’ strong demand the issue being subscribed 1.33 times.
The Rs 645-crore initial public offering received bids for 2.69 crore equity shares against the IPO size of 2.016 crore shares, data available on exchanges show.
IRCTC has set IPO has a price band of Rs 315-320 per share. At the upper price band, Retail investors applying for IRCTC shares get a discount of ₹10 per share, The maximum number of shares retail investors can bid in this IPO is 640 or 16 lots, the stock is available at P/E multiple of 18.8 times to its FY19 EPS of Rs 17.
Tomorrow 3rd October is last day for subscription. Through this IPO in state-run IRCTC, the government is offloading 2 crore equity shares or 12.6% stake, which will bring down its stake to 87.4%.
The issue comprises an offer for sale of 2,01,60,000 shares and after stake sale, the government’s shareholding in the company will be reduced to 87.40 percent. Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees.
IRCTC reported a net profit of ₹272.6 crore in FY19, up from ₹220.6 crore in FY18. The company’s revenue grew to ₹1,867 crore in FY19 from ₹1,470 crore in FY18.
IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India) are the lead managers to the offer.
Alankit Assignments Limited is the registrar to the IRCTC IPO.
IRCTC is the only entity authorized by the Indian Railways to provide services. This allows increasing market share in e-ticketing, packaged drinking water, and in e-catering.
Here are some IRCTC facts:
- 24,000 Ticket booking capacity per min
- 10 lac Daily tickets booked
- Rs. 36,000 Cr Payments handled/year
- 54 lac Active registered users
- 28,000 Daily new users
- 21 Cr Water bottles produced/year
IRCTC IPO allotment date and listing date
The tentative date of allotment of IRCTC shares is 9th October.
IRCTC shares will get listed on both BSE and NSE and tentative date of is 14th October.