The BSE and NSE listing debut of Indian Railway Catering and Tourism Corporation got their shares turn double. The stat says IRCTC shares rose as much as 118% to Rs. 698 as compared to the issue price of Rs. 320. This is the stat of NSE. At around 10:30 am, IRCTC shares have retained most of their gains and were trading near Rs. 685 on BSE.
The IPO of IRCTC, which was open for subscription between September 30 and October, was subscribed an extensive 112 times. The retail section was subscribed nearly 15 times while qualified institutional buyers (QIBs) segment got subscribed 109 times, and non-institutional investors (NIIs) category 355 times.
The issue price was fixed at ₹320 per share. Since retail investors received shares at a discount of ₹10 per share, for them, the issue price is ₹310 per share.
The issue comprises an offer-for-sale of 2.01 crore shares of face value of ₹10 each. Many analysts had recommended subscription to the IRCTC IPO and also pointed out to potential listing gains.
Before IRCTC, Avenue Supermarts Ltd., owned by billionaire Radhakishan Damani, more than doubled on listing in March 2017 after the company’s IPO got bids for 106 times the quantity offered.
The IRCTC IPO included an offer-for-sale of 2.01 crore shares of face value of ₹10 each. Yes, Securities (India), SBI Capital Markets, and IDBI Capital Markets were the merchant bankers of the issue while Alankit Assignments was the registrar. The share allotment happened on October 10. The government scrubbed up nearly ₹650 crores from the sale of shares of IRCTC, and its stake is now down to 87.4%.
IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam, and Ircon.
IRCTC reported a net profit of ₹272.6 crores in FY19, up from ₹220.6 crores in FY18. The company’s revenue grew to ₹1,867 crore in FY19 from ₹1,470 crore in FY18.
IRCTC enjoys a monopoly in its business as it is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
(With Agency Inputs)