Indian Railway Catering and Tourism Corporation (IRCTC), the online ticketing, tourism and the catering arm of railways, made its stock market debut on Monday, October 14.
The IRCTC shares settled at Rs 644 on BSE and crossed Rs 626 on the NSE index.
The company earlier raised Rs 645 crore through its initial public offer (IPO). The issue price for retail investors was set Rs 310 per share, as they received shares at a discount of Rs 10 per share.
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.
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.
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.