IRCTC Stock Performance
Recently, it was seen that shares of Indian Railways Catering and Tourism Corporation (IRCTC) made its debut on the Bombay Stock Exchange and National Stock Exchange. Surprisingly, the shares of IRCTC have almost doubled after its listing on the market.
Lately before markets opened, IRCTC shares have settled at Rs 644 on the Bse while it almost touched Rs 626 on the NSE. Later the issue price of IRCTC shares was fixed at Rs 320.
Here in the grey market, IRCTC shares are being declared a premium of Rs 240 per share, which actually was going to provide a gain of over 70 per cent from the issues price, which was reported by the news agency IANS. IRCTC’s share actually made it the best PSU and most successful IPO in the last two fiscals in terms of the overall subscriptions.
Now here it is worth noting that Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the most prominent merchant bankers who handled the issue while Alankit Assignments was the registrar. The shares that were allotment occurred on October 10.
With the recent IPO listing, the government had earned nearly Rs 650 crore from the sale of shares and its stake in IRCTC and has now reduced to 87.4 per cent. Here in this regard customers should also note that IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam and the ICRON.
The company has wonderfully reported a net profit of over Rs 272 crore in the fiscal year 2019 from Rs 220 in the previous year. And at the same time the company’s revenue grew to Rs 1,867 crore in FY19 from Rs 1,470 crore in FY18.
IRCTC IPO Details
Rs 645-crore which is actually the initial public offering of the state-owned Indian Railway Catering and Tourism Corporation (IRCTC) was subscribed not less than 112 times and made it the most successful share sale in over 20 months.
Led by the earnest demand from institutions and rich investors, the IPO got bids for nothing less than 225.6 crore shares compared to the total issue size of 2.02 crore shares data on the NSE showed. This has actually made it the best subscribed IPO since Apollo Micro Systems which was subscribed 250.7 times and equally for the Amber Enterprises India which was subscribed 115.3 times. Apparently both the IPOs were launched in January 2018.
The portion that was reserved for QIBs got subscribed 108.8 times, while HNI portion got subscribed for a higher rate to 354.5 times. Retail and employees portion got equally subscribed 14.6 times and 5.8 times, respectively. Here the best part is that both the retail investors and employees will receive shares at a Rs 10 discount to the final offer price.
The company had finalized a price band of Rs 315-Rs 320 for the IPO.
A point to be noted that IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India) were actually the book running lead managers to the offer which altogether constitutes 12.6% of the total paid-up equity.
IRCTC IPO has at this time evoked tremendous response from all the categories of investors, with utmost happiness the issue is being subscribed more than 111 times. The issue that has divested 12.6% of GoI’s stake in the CPSE is expected to generate revenue of Rs 645 crore. It is the 2nd CPSE to be listed this fiscal market tweeted by The Department of Investment and Public Asset Management
The grey market premium of around Rs 200 entirely captures the value of the business. It is understood that further gains will depend on how the company ramps up its e-ticket business, and at the same time how its private train project ramps up and when the new water bottling plants come up which is reported by Geetanjali Kedia a senior research analyst at SPTulsian.com.
She further announced that the listing should be around Rs 520- Rs 525.
Here the brokerages such as ICICIdirect, India Nivesh Securities, BP Equities, Phillip Capital, Angel Broking and Anand Rathi had given a subscribe rating to the issue ahead of the IPO. Here IRCTC IPO has continuously been garnering interest due to attractive pricing policy and monopolistic nature of the company’s business.
As we know that IRCTC is the only entity authorized by the Indian Railways to provide services. This equally gives it advantages in increasing market share in terms of e-ticketing, for packaged drinking water, and also in e-catering which was recently reported by Phillip Capital in a pre-IPO note.
Some important details regarding IRCTC IPO are mentioned below:
|Issue Open Date:||Sep 30, 2019 to Oct 3, 2019|
|Issue Type:||-Book Built Issue IPO-|
20,160,000 Equity Shares of Rs.10|
-aggregating up to Rs.645.12 Cr-
|Shares Offer for Sale:||
20,160,000 Equity Shares of Rs.10|
|Face Value of each:||Rs.10 Per Equity Share-|
|Issue Price of each:||Rs. 315 to Rs. 320 Per Equity Share-|
|Retail Discount on each:||Rs.10|
|Market Lot:||40 Shares|
|Min Order Quantity:||40 Shares|
|Listing At–||BSE, NSE|
Tentative Date / Timetable for IRCTC IPO
|Bid/Offer Opens date:||Sep 30, 2019|
|Bid/Offer Closes date:||Oct 3, 2019|
|Finalization on the of Basis of Allotment:||Oct 9, 2019|
|Initiation of Refunds date:||Oct 10, 2019|
|Credit of Shares to the Demat Acct–||Oct 11, 2019|
|IPO Shares Listing Date is:||Oct 14, 2019|
IRCTC IPO Lot Size and Retail Price
Promoter Holding for IRCTC IPO
|Pre Issue Share Holding is:||100%|
Listing Date of IRCTC IPO
|Listing Date:||Monday, October 14 2019|
|BSE Script Code :||542830|
|Issue Price:||Rs.320 Per Equity Share|
|Face Value of each:||Rs.10 Per Equity Share|
IRCTC Stock Performance Images on India Content
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