IRCTC IPO Details

by Altaf Shaikh
IRCTC IPO Details

The state-owned Indian Railway Catering and Tourism Corporation Ltd (IRCTC)’s initial public offering (IPO) opens for subscription today. Powerful demand is likely to be seen at the IRCTC IPO, according to brokerages and experts. Note that the IRCTC IPO will assist the government to raise the Rs 645 crore.

IRCTC is the fourth Railway undertaking to come up with an IPO after RITES, Rail Vikas Nigam, and Ircon. The government is unloading 2 crore equity shares or 12.6 percent stake through this IPO, which will push its interest in the state-run IRCTC down to 87.4%.

The brokerage company claimed that one of the investment issues could be the fact that the business and revenues are heavily dependent on Indian Railways. Removal of the company’s exclusivity for catering, electronic railway tickets and packaged drinking water at railway and train stations in India may also be a concern for investors.

Adverse reports, media rumors, and other public statements relating to food quality, catering facilities and operation, and withdrawal or reduction of service charges by the ministry or order to share part of the revenue with them by IRCTC is also something that needs to be considered before investing.

  • IRCTC (Miniratna PSU) is wholly the property of the Government of India and managed by the Railway Ministry. They are Indian Railways’ only body approved to provide railway, electronic railway tickets and packaged drinking water catering services at India’s railway stations and trains.
  • IRCTC was developed with the objective of updating, modernizing and professionalizing Catering and accommodation facilities, managing hospitality services at railway stations, trains and other places and promoting foreign and domestic tourism in India through public-private participation.
  • IRCTC currently operates under the ‘Train Neer’ mark in four market segments, namely Internet ticketing, catering, bottled drinking water, and travel and tourism.
  • Under the 2017 Catering Policy, IRCTC has a monopoly position in many of the services that it offers to clients. In particular, they are the sole supplier of electronic railway ticketing trains and stations, catering facilities, and bottled drinking water (Rail Neer).

The Indian Railway Catering and Tourism Corporation has released its allocation status for the IPO share. Any interested investors can visit ipo.alakit.com. More updates will appear directly on the website. Investors will be able to sign in every PAN or application number. The IRCTC IPO registrar must handle the allocation and refund process for the shares. IPO is the initial public offering, also known as the launch of the stock market. It comprises the sale to institutional investors of the organization’s shares.

Objects of the IRCTC IPO:

  • To conduct the Selling shareholder’s disinvestment of 20,160,000 Equity Shares constituting 12.60% of the paid-up Equity Share capital IRCTC
  • To achieve the benefits of listing on stock exchanges the Equity Shares.
  • The company will not receive any proceeds from the Offer, and all proceeds will go to the shareholder selling.
  • The IRCTC IPO has been a big success among investors, as it has been subscribed to 111.91 times this month. The Rs 645-crore IPO was within a Rs 315-320 price range per share.
  • IRCTC IPO shares were zooming over 101% in Monday’s debut trade against its Rs 320 issue price.
  • On the NSE, in opening trade, it skyrocketed 95.62% to Rs 626. It was listed at Rs 644, reflecting a huge 101.25% jump in comparison with the BSE issue price.
  • Between 30 September and 4 October, the IRCTC ‘s IPO was open to subscription. IRCTC IPO has been subscribed to 112 times per share at a price range of Rs 315-320.
  • Market valuation for the company stood in the morning trade at Rs 10,972 crore. IRCTC’s initial public offering was a big success with investors who signed up 111.91 times earlier this month.
  • IRCTC is the only body approved by Indian Railways to provide rail, electronic railway tickets and packaged drinking water catering facilities at railway and train stations in India.
  • IRCTC IPO is part of the Government’s divestment plan for the current 2019-20 financial year. IRCTC shares are sold at a final price discount to both workers and institutional investors.
  • IRCTC is the only body approved by Indian Railways to provide rail, electronic railway tickets and packaged drinking water catering facilities at railway and train stations in India.
  • IRCTC IPO is part of the Government’s divestment plan for the current 2019-20 financial year. IRCTC shares are sold at a final price discount to both workers and institutional investors.

IRCTC IPO Strengths

  • The only entity authorized by the Indian Railways to provide catering services, online railway tickets, and packaged drinking water at India’s railway and train stations.
  • Highly lucrative source of income from company catering and the sale of tour packages.
  • Attractive pricing and industry of a monopolistic type.
  • Completely debt-free enterprise.

IPO is the initial public offering, also known as the launch of the stock market. This includes the sale to institutional investors of the organization’s stock.

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