IRCTC IPO: Rs 645 crore issue opens on Sep 30; price band Rs 315-320 per share
The Initial Public Offering (IPO) of the state-run Indian Railway Catering and Tourism Corporation (IRCTC) will open for subscription on September 30 with a price band of Rs 315-320 per share. A total of 1.6 lakh equity shares have been reserved for the employees, a company statement said, adding that all the proceeds from the sale will go to the selling shareholder.
In an interview with Zee Media, IRCTC Chairman and Managing Director MP Mall said that the issue comprises an offer for the sale of 2 crore shares, which forms 12.50% of the total paid-up equity by the Ministry of Railways. The reservation of 1.6 lakh equity shares for company employees will push the offered size to form a total of 12.6% of the total paid-up equity, he said. The minimum bid lot is 40 equity shares and in multiples of 40 equity shares thereafter.
According to the IRCTC chairman, passengers have responded well to the launch of private trains and it is expected that more of railway operations will be privatised in the future. Talking about the revenue garnered from railway operations, he said that the ticketing revenue had indeed decreased after the removal of service charge in 2016 but a new service charge is being levied from September 1 and it will definitely help add to the aggregate revenue that is gathered from sales.
It is expected that offering the shares to the public will help raise capital from investors for the Indian Railways subsidiary company.