IRCTC IPO for Rs 650 crore opens on September 30; check price band, bid lot, other details

The much awaited railway PSU Indian Railway Catering and Tourism Corporation (IRCTC) IPO for Rs 645 crore will hit the stock market on September 30. IRCTC IPO will remain open for subscription between September 30th and October 3rd. The government looks to raise to raise up to Rs 645.12 crore at the higher end of the price band. The railway PSU has set a price band of Rs 315-320 for its intended share sale. IRCTC is offering a discount of Rs 10 per share to retail investors and employees. The minimum bis lot has been fixed at 40 shares, and in multiples of 40 shares thereafter. IRCTC IPO is a complete offer for sale of 2 crore shares (representing 12.50 percent of total paid-up equity) by the Ministry of Railways. The firm said that there would also be additional employee reservation portion of 1.6 lakh shares, taking the total offer size to 12.6% of total paid-up equity.

IDBI Capital Markets & Securities, SBI Capital Markets and Yes Securities (India) are book running lead managers to the IRCTC public offering. On September 13, Financial Express Online had reported that the railway PSU will launch its IPO in the upcoming Navratri season which begins on September 29. IRCTC had filed the draft red herring prospectus (DRHP) with capital market watchdog SEBI in August.

The railway giant generated a revenue of Rs 1,899 crore in FY19, up 25% from the previous financial year. IRCTC’s net profit jumped 23.5% on-year to Rs 272.50 crore in FY19. The firm which sells tickets for Indian Railways and handles its catering services saw 72 lakh logins per day, and 2.5 crore logins in a month, data from IRCTC’s DRHP showed. IRCTC has earned the reputation of being one of the most transacted websites in the Asia-Pacific region, with customers booking around 8 lakh tickets per day. Incorporated by the government in 1999, IRCTC was conferred the status of Miniratna (Category-I Public Sector Enterprise) status in 2008.

The Indian Railway Catering and Tourism Corporation Limited (IRCTC)