IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels. The initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of the Indian Railways, was subscribed nearly 112 times on the last day of bidding today.
The IPO received bids for 225.39 crore shares compared to the issue size of 2.01 crore shares. The IPO which has been a huge hit among investors was fully subscribed on the second day of bidding on Tuesday. On the first day of bidding, the Rs 645-crore IRCTC IPO was subscribed 81.31%. The IPO received bids for 1,63,94,040 shares compared to 2,01,60,000 or 2.01 crore equity shares on offer on the first day.
The public issue, which closes today, is a part of the government’s divestment programme for the financial year 2019-20. The government which owns 100% in IRCTC plans to sell 12.6% stake in the firm. IRCTC IPO fully subscribed on day 2, sees strong demand from retail investors, after the IPO, government’s stake in the firm will fall to 87.4%. IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels. The issue involves sale of 2.01 crore equity shares of face value of Rs 10 each in a price band of Rs 315 to Rs 320.
Post listing, market capitalisation of the government-owned firm is pegged at Rs 5,120 crore at the higher end of price band The book running lead managers to the offer are IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India). The company would not receive any proceeds from the IPO and “all proceeds shall go to shareholders”, IRCTC said.
