IRCTC IPO subscribed 33pc within first few hours on opening day
The initial public offer of Indian Railway Catering And Tourism Corporation (IRCTC) was subscribed 33 percent within the first few hours of opening of bidding on Monday.
IRCTC's public offer to raise about Rs 645 crore received bids for more than 67 lakh shares against the total issue size of over 2 crore shares, as per exchanges' data.
Image: Wikimedia Commons
Price range for the company's initial public offer (IPO) has been fixed at Rs 315-320 per share. The issue comprises an offer for sale of 2.01 crore shares of face value of Rs 10 each.
Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees. Bidding for the offer of the railways' tourism and catering arm will close on October 3.
Last week, IRCTC's Chairman and MD Mahendra Pratap Mall, told reporters,
"Through the IPO, we are offloading 12.5 percent stake and it will bring down the government's stake to 87.5 percent."
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder, which is the government. In August, this year, IRCTC filed draft papers with market regulator Securities and Exchange Board of India (SEBI) for its initial public offer.
YES Securities (India), SBI Capital Markets and IDBI Capital Markets & Securities are the managers to the offer.
In addition to this, IRCTC is the only entity authorised by the Indian Railways to provide catering services to the Indian Railways, online railway tickets, and packaged drinking water at railway stations and trains in India, according to the draft red herring prospectus (DRHP). The company’s shares are proposed to be listed on BSE and NSE.
Last week, the Indian Railways also asked its different zones to identify potentially-viable and operationally-feasible routes for the introduction of privately-operated passenger trains.
In a letter dated September 23, the Railway Board gave an indicative list to all the zones, enumerating 24 routes that have the potential of being operated by private players.
(Edited by Suman Singh)