Indian Railway Catering and Tourism Corporation (IRCTC) shares recorded a blockbuster debut with their listing in the secondary market today and ended almost 130% higher on the bourses.
With more than doubling investors' money in one day, the 'catering and tourism' monopoly has beaten the recent Dmart listing, that gained 114% on listing day.
IRCTC became the only PSU to deliver 100 plus listing day gains, which eclipsed government-owned PowerGrid, that delivered 95% gains on listing day in 2007. This makes IRCTC listing the most successful entry of a PSU enterprise in the equity market.
In terms of overall subscriptions, IRCTC's listing figures make it the most successful IPO in the last two fiscals.
Against the listing price of Rs 644, the IRCTC stock made an intraday high of Rs 743.80 on both the bourses, with 15.50% intraday gain registered on the Bombay Stock Exchange, and 18.80% hike against the listing price on NSE.
As per the market depth data available on BSE, there were 91% buyers bidding in the stock as compared to 9% sellers offering the share.
Speaking at the listing ceremony, IRCTC CMD, Mahendra Pratap Mall said, "We have more than doubled the wealth of investors. This showcases the trust of our customers and stakeholders on the brand called IRCTC and the services it provides. The investor demand exceeded shares on offer by 112 times, making us the most sought after state-run firm."
Earlier in the day, IRCTC shares listed at a premium of 101% at Rs 644 on BSE and 95.6% higher at Rs 626 on the NSE, over its issue price of Rs 320 per share on the bourses. Grey market trades in the stock were suggesting at least 80% listing premium.
Commenting on IRCTC's debut in the secondary market, S Ranganathan, Head of Research at LKP Securities said," IRCTC listing today proved yet again that a high-quality business with a clear runway for growth which leaves a lot on the table for investors is a sure shot success."
He added, "IRCTC has today managed to replicate the success of Avenue Supermart in the primary market where we saw bidders showing an appetite for the stock even after the stock doubling on Day-1 of listing".
IRCTC share which was open for subscription between September 30 and October 4, saw subscription of nearly 112 times on the last day of the initial public offer. The issue involved the sale of 2.01 crore equity shares of the face value of Rs 10 each in a price band of Rs 315 to Rs 320.
The 'Travel Support Services' stock with a face value of Rs 10, has made an intraday high of Rs 743.80 and a day's low of Rs 625 on BSE in today's trade. Similarly, on NSE, the IRCTC shares have made a day's high of Rs 743.80 and a low of Rs 625.
"The immense faith & support shown by investors is a testament to 'Make in India', which has resulted in the unprecedented & blockbuster listing of the IRCTC IPO," tweeted Minister of Railways and Commerce & Industry Piyush Goyal.
"This will provide a boost to the Indian Railways & country's economic growth," he added.
By the closing bell, the market capitalisation of IRCTC stood at Rs 11,657.60 crore on BSE. At market close, the volume traded stood at 54.40 lakh shares on BSE and 452.70 lakh on NSE.
As compared to its issue price of Rs 320 per share on the bourses, the IRCTC stock closed 127.69% higher at Rs 728.60 on BSE and 129% higher at Rs 727.75 on NSE. The stock ended at 13% hike against the listing price of Rs 644 on BSE and at 17% hike, against the listing price of Rs 626 on NSE today.
By Rupa Burman Roy