IRCTC share delivers more than 100% returns on market debut, lists at Rs 644 on BSE

Indian Railway Catering and Tourism Corporation (IRCTC) share listed with a gain of over 100% compared to its issue price of Rs 320 per share on the bourses today. 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 the IRCTC stood at Rs 10,736 crore on BSE. At 10:17 am, IRCTC share gained up to 6.94% to Rs 688.75 compared to listing price of Rs 644 on BSE.

Analysts were upbeat about the prospects of the IRCTC IPO which was open for subscription between September 30 and October 4. Geetanjali Kedia, senior research analyst at SPTulsian.com expected the IRCTC share to list at around Rs 520-Rs 525. That amounted to 64% premium to the issue price of Rs 320 at the higher end.

Bids for IRCTC shares were invited in a price band of Rs 315 to Rs 320 during the IPO held from September 30 to October 3.

"The grey market premium of around Rs 200 captures the value of the business. Further gains will depend on how the company ramps up its e-ticket business, how its private train project ramps up and when the new water bottling plants come up," Kedia told The Economic Times.

The issue involved 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 IPO was subscribed nearly 111.80 times on the last day of bidding. The IPO received bids for 225.39 crore shares compared to the issue size of 2.01 crore shares.

The allotment of shares for the initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC) was held from October 9 to October 10.

Alankit Assignments, the registrar of the IRCTC IPO, will conduct the process of share allotment and refund processing.

IRCTC IPO: PSU share likely to list at 64% premium over issue price

The IPO which was a huge hit among investors was fully subscribed on the second day of bidding. On the first day of bidding, the Rs 645-crore IRCTC IPO was subscribed 81.31%. The IPO received bids for 1,63,94,040 shares compared to 2,01,60,000 or 2.01 crore equity shares on offer on the first day.

The public issue is 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%. IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism.

Also read: IRCTC IPO subscribed 81% on Day 1; brokerages bullish on Rs 645-crore issue

IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels. The book running lead managers to the offer were 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