IRCTC share price gained over 19% to its listing price today on rising investor interest in the share of Indian Railways' subsidiary. IRCTC share price rose 15.50% to Rs 743.80 compared to the listing price of Rs 644 on BSE. At 12:27 pm, market capitalisation of IRCTC stood at Rs 11,468 crore.
On NSE, the share price of public sector undertaking was trading 18.81% higher at Rs 743.80 compared to the listing price of Rs 626. By 12:29 hours, 40 lakh shares of IRCTC changed hands which amounted to transactions worth Rs 273.12 crore on BSE.
Earlier in the day, IRCTC share listed with gain of over 100% compared to its issue price of Rs 320 per share on BSE and NSE. IRCTC share which saw subscription of nearly 112 times on the last day of initial public offer (IPO) listed at Rs 644 on BSE and Rs 626 on NSE today.
IRCTC share listing is the among the most successful entries for a PSU firm in the stock market. Post listing, market capitalisation of IRCTC stood at Rs 10,736 crore on BSE.
IRCTC IPO was open for subscription between September 30 and October 4. The issue involved sale of 2.01 crore equity shares of face value Rs 10 each in a price band of Rs 315 to Rs 320.
The public issue was a part of the government's divestment programme for the financial year 2019-20. The government which owns 100% in IRCTC plans to sell 12.6% stake in the firm.
After the IPO, government's stake in the firm will fall to 87.4%. The issue involves sale of 2.01 crore equity shares of face value of Rs 10 each in a price band of Rs 315 to Rs 320.
The book running lead managers to the offer are IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India). The company would not receive any proceeds from the IPO and "all proceeds shall go to shareholders", IRCTC said.
IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.
By Aseem Thapliyal