Indian Railway Catering and Tourism Corporation (IRCTC) is the e-ticketing arm of the Indian Railways IRCTC's initial public offer (IPO) - which opened for subscription on Monday - was subscribed 81 per cent on the first day.
IRCTC or Indian Railway Catering and Tourism Corporation - the online ticketing arm of the Indian Railways - plans to raise up to Rs 645 crore through the IPO, which will close on Thursday, October 3.
The IRCTC IPO is the largest of all the railway offerings so far.
There are three other listed entities associated with the Railways: Rail Vikas Nigam, Rail India Technical and Economic Service (RITES) and Indian Railway Construction Company (IRCON).
IRCTC IPO - Here are 10 things to know about the largest Railways IPO so far:Subscription status: At the end of the first day of issue,bids for 1.64 crore shares were received out of the total 2.02 crore shares on offer under the IRCTC IPO.
That marked a subscription of 81.32 per cent, data from the National Stock Exchange (NSE) showed.Issue size: IRCTC is selling 2.01 crore shares under the IPO.
At the upper end of the price band, the company is valued atRs.5,120 crore, and Rs.5,040 crore at the lower end, according to Axis Capital.Issue price:IRCTC has set an issue price of Rs 315-Rs 320 for the IPO.Offer for sale details:The IRCTC IPO comprises an offer for sale (OFS) of 2.01 crore shares, of which, 1.6 lakh are reserved for employees.Utilisation of proceeds: All proceeds from the IRCTC IPO will go directly to the selling shareholder.
The total share dilution constitutes to about 12.60 per cent of IRCTC's paid-up equity share capital.Reservation: Half of the total shares on offer are reserved for qualified institutional investors, 35 per cent for retail investors and 15 per cent for non-institutional buyers.Lot size: The IRCTC IPO can be subscribed to with a minimum of 40 shares, and in the multiples of 40 thereof.Should you invest?Brokerage Angel Broking has assigned a subscribe rating to the IRCTC IPO.
The recent tax reduction by the government and the increase in revenue from the service charge for online ticketing will improve IRCTC's profitability substantially going forward, according to Angel Broking.
(Read more)Company profile: State-run IRCTC is the only entity authorised by the Indian Railways to provide catering services to railways, online railway tickets, and packaged drinking water at railway stations and trains in India.IRCTC business: Currently, IRCTC operates in four business segments: Internet Ticketing, Catering, Packaged Drinking Water and Travel and Tourism.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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