IRCTC IPO to open today: All you need to know

Sep 30, 2019 10:01 AM IST

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The Indian Railways has come out with three IPOs of its subsidiaries—Rail Vikas Nigam Limited (RVNL), Rail India Technical and Economic Service (RITES) and Indian Railway Construction Company Limited (IRCON).

IRCTC or Indian Railway Catering and Tourism Corporation’s (IRCTC) ₹645-crore initial public offer (IPO) will open for subscription on Monday and close on Thursday.

Indian commuters crowd the Churchgate railway station in Mumbai, India Friday, July 5, 2019. Indian Prime Minister Narendra Modi's government has proposed to invest heavily in infrastructure, digital economy and job creation to lift a slugging economy that's burdened with a 45-year-high unemployment rate of 6.1 percent. (AP Photo/Rafiq Maqbool)(AP)

The IRCTC IPO will be the largest public offer by the Indian Railways so far.

The Indian Railways has come out with three IPOs of its subsidiaries—Rail Vikas Nigam Limited (RVNL), Rail India Technical and Economic Service (RITES) and Indian Railway Construction Company Limited (IRCON)—so far.

Here’s all you want to know about IRCTC IPO:

1. State-run IRCTC has set the price band of ₹640 crore IPO at ₹315-320 per share. Retail investors and eligible employees would be offered a discount of ₹10 per share.

2. The IRCTC IPO comprises an offer for sale of 20 million shares, representing 12.6% of total paid-up equity. This will bring down the government’s stake to 87.4%.

3. There would also be additional employee reservation portion of 160,000 shares, taking the total offer size to 12.6% of total paid-up equity.

4. The government intends to raise ₹635.04 crore at ₹315 per share, the lower end of the price band, and ₹645.12 crore at ₹320 per share at the higher end of the price band, through this IRCTC IPO.

5. The minimum bid lot is 40 equity shares and in multiples of 40 equity shares thereafter.

6. Of the total shares on offer, 50% will be allocated to qualified institutional buyers (QIBs), including 200,000 equity shares set aside for the mutual fund portion on a proportionate basis. Also, 15% of the offer will be available to the non-institutional investor category, and at least 35% will be made available to the retail category.

7. IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India) are the managers to the offer.

8. IRCTC will not receive any proceeds from the offer and all the capital raised will go to the selling shareholder or the government.

9. IRCTC sold train tickets worth ₹28,475 crore online in the year ending March 2018, growing 14% from a year earlier, but its overall income registered a dip.

10. The IPO issue will close on October 3rd.