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IRCTC IPO to open today, here’s all you need to know

IRCTC provides catering services to railways, online railway ticketing and packaged drinking water at railway stations and trains in India.

By Newsd
Published on :
IRCTC to launch IPO by September 30: Report
Source: telanganatoday

Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of the Indian Railways, will hit the market with the initial public offering (IPO) at Rs 635-645 crore.

The IPO will open in a price band of Rs 315-Rs 320 per share. The issue comprises an offer for sale of 2,01,60,000 shares of Rs 10 face value. Of this, 1,60,000 shares are reserved for employees. The IPO comprises an offer for sale of 20 million shares, representing 12.5% of total paid-up equity, by the ministry of railways.

The minimum bid lot is 40 shares. Thus, orders can be placed in multiples of 40 equity shares. The IPO proceeds will go directly to the government. IRCTC is offering a discount of Rs 10 per share to retail investors and employees.

The IPO of IRCTC will open on Monday and close on Thursday. The issue comprises an offer for sale of 2 crore shares by the Indian government and is a part of the government’s divestment process.

IRCTC, a profit-making entity of Indian Railways, reported Rs 272.6 crore net profit in FY19 and Rs 220.62 crore in FY18. The company’s revenue grew to Rs 1,867.88 crore in FY19 from Rs 1,470.46 crore in FY18.

Three other Indian Railways subsidiaries to have come out with IPOs are: Rail Vikas Nigam Limited (RVNL), RITES (Rail India Technical and Economic Service) and IRCON (Indian Railway Construction Company Limited).

An IPO is a financial instrument through which an unlisted company offers shares to the public. The funds raised are used for various purposes, like working capital, debt repayment and acquisitions.

IRCTC provides catering services to railways, online railway ticketing and packaged drinking water at railway stations and trains in India.

It operates in four business segments — Internet ticketing, catering, packaged drinking water and travel & tourism. It also does other businesses, including non-railway catering and services, like e-catering, executive lounges and budget hotels.

Free insurance, lounge access for IRCTC’s Tejas Express

With inputs from IANS

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