The Indian Railway Catering and Tourism Corporation (IRCTC) made its stock market debut on Monday. The IRCTC shares are now listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The IRCTC shares have almost doubled after getting listed on the stock exchanges.
As a part of the initial public offering (IPO) of the IRCTC, the shares were issued at Rs 320. The share price of IRCTC was set at Rs 622 on the NSE while it was Rs 644 on the BSE. The IRCTC IPO was subscribed a whopping 112 times when it decided to go public on 30 September 2019.
The qualified institutional buyers (QIBs) subscribed as many as 109 times while the retail category investors subscribed 15 times. As a part of the IPO, more than two crore shares were issued on offer-for-sale with a face value of Rs 10 each. Many investors subscribed to IRCTC IPO, citing good returns.
The IRCTC share price is quoted at Rs 240 in the grey market, which converts into a gain of nearly 70% on the price of the issue. The figures of the IRCTC shares show that it is the best performing PSU. Also, in terms of subscriptions, IRCTC IPO is the most successful IPO in the previous two fiscals.
Also Read: IRCTC in its IPO Prospectus Says Indian Railways Support is Vital
IDBI Capital Markets, Yes Securities, and SBI Capital Markets were the merchant banks responsible for handling the issue. The allotment of shares happened on 10 October 2019. The registrar of the IRCTC IPO was Alankit Assignments.
The IRCTC IPO listing saw government earning nearly Rs 650 crore by giving away the shares through sales. The government’s stake in IRCTC has now come down to 87.4%. The IRCTC joins Rail Vikas Nigam, ICRON, and RITES, which are the other railways’ companies listed on the stock exchanges.
The IRCTC is in the news for making good profits. It reported a profit of nearly Rs 272 crore in FY 2019 while it could make only Rs 220 crore in the last fiscal year. The company’s revenue has grown significantly to touch Rs 1,867 crore in the current fiscal while it was Rs 1,470 crore in previous fiscal.
For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in
Engineer by qualification, financial writer by choice. I am always open to learning new things.
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