IRCTC IPO subscribed 3 times on Day 2; heavy demand from retail investors

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Updated: October 1, 2019 5:17:55 PM

Indian Railway Catering and Tourism Corporation (IRCTC) IPO saw robust demand, and was subscribed 3.16 times as at the end of 2nd day of bidding.

The Rs 645 crore public issue saw bids for 6.15 crore shares, as against the total issue size for 2.01 crore, implying a subscription of more than 3 times.

Indian Railway Catering and Tourism Corporation (IRCTC) IPO saw robust demand, and was subscribed 3.16 times as at the end of 2nd day of bidding. The Rs 645 crore public issue saw bids for 6.15 crore shares, as against the total issue size for 2.01 crore, implying a subscription of more than 3.16 times. The retail investor category saw bids for more than 6 times the issue size, while NII’s bid for more than 1.70 times the portion reserved for them. The employee category received bids for 2.61 times their reserved portion. IRCTC IPO will remain open for subscription till October 3rd, Thursday Through the IRCTC IPO, the government looks to raise up to Rs 645.12 crore at the higher end of the price band.

Also read: GST collection slips in September; falls way behind Rs 1 lakh crore for second consecutive month

IRCTC has set a price band of Rs 315-320 for its intended public offer. The railway PSU is offering a discount of Rs 10 per share to retail investors and employees. The minimum bid lot has been fixed at 40 shares, and investors can put in bids 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.

IRCTC generated a revenue of Rs 1,899 crore in FY19, up 25% from the previous fiscal. The firm’s net profit jumped 23.5% on-year to Rs 272.50 crore in financial year 2019. IRCTC’s catering services saw 72 lakh logins per day, and 2.5 crore logins in a month in the previous fiscal. 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.

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