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IRCTC stock market debut tomorrow: All you need to know

The IRCTC is a subsidiary of the Indian Railways which offers purchase of railway tickets online and catering service at railway stations and on trains in India. 

The Indian Railway Catering and Tourism Corporation (IRCTC), which recently concluded its Rs 645-crore initial public offering (IPO), will be making its stock market debut on Monday. Shares of IRCTC will be listed on the Bombay Stock Exchange(BSE) and National Stocke Exchange (NSE).

“Effective from Monday, October 14, 2019, the equity shares of IRCTC Ltd shall be listed and admitted to dealings on the exchange in the list of ‘B ‘ Group of Securities,” a circular issued by the BSE said.

IRCTC IPO subscribed 112 times

Earlier, the IPO was open for subscription between September 30 and October 4. It was subscribed 112 times at a price band of Rs 315-320 per share, the highest ever subscription among PSUs in history.

A Rs 10 per share discount was given to retail investors and employees of the company. Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees.

The category meant for qualified institutional buyers (QIBs) was subscribed 108.79 times, non-institutional investors (NIIs) category witnessed a subscription of 354.52 times, while the same for retail investors stood at 14.65 times.

Yes Securities (India), SBI Capital Markets and IDBI Capital Markets & Securities were the merchant bankers of the issue.

“IRCTC IPO evoked tremendous response from all the categories of investors, with the issue being subscribed more than 111 times. The issue, which divested 12.6 per cent of the government’s stake in the CPSE is expected to generate a revenue of Rs 645 crore. It is the 2nd CPSE to be listed this fiscal,” the Department of Investment and Public Asset Management (DIPAM) had said earlier in a tweet.

What is IRCTC?

The IRCTC is a subsidiary of the Indian Railways which offers purchase of railway tickets online and catering service at railway stations and on trains in India.  It also exclusively manufactures and supplies packaged drinking water under the IRCTC brand.

As per the draft red herring prospectus filed by IRCTC with Sebi in August, IRCTC sales rose to Rs 1,899 crore and its profit grew 23.5 per cent to Rs 272.5 crore during the financial year 2019.