Industry

IRCTC IPO subscribed 3.25 times till October 1

IRCTC is the only entity authorised by the Ministry of Railways to provide catering services to the railways.

IRCTC is the only entity authorised by the Ministry of Railways to provide catering services to the railways.   | Photo Credit: Ramesh Sharma

The initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC), which opened for subscription on Monday, was subscribed 3.25 times till Tuesday, with retail investors showing a keen interest in the offer.

As per NSE data, the issue received bids for 6.56 crore equity shares as against 2.02 crore shares on offer in the price band of ₹315-320.

The retail segment, which was already over subscribed on Monday, received a large number of bids on Tuesday as well, with the segment getting subscribed 6.21 times.

The employee portion has been subscribed 2.64 times. The company will be offering a discount of ₹10 to applicants in the retail and employees categories.

Meanwhile, the portion reserved for high net worth individuals got subscribed 1.73 times, while that reserved for institutional investors got subscribed 1.65 times.

IRCTC, which is the railways’ online ticketing, tourism and catering arm, is entering the capital market with an a public issue of ₹645 crore.

The company is the only entity authorised by the Ministry of Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.

IRCTC earns the maxium revenue (55%) from its catering operations followed by travel & toursim (23.38%), ticketing (12.35%) and Rail Neer (9.28%).

The merchant bankers managing the issue are IDBI Capital Markets, SBI Capital Markets and Yes Securities (India).

The issue will close for subscription on Thursday.

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Printable version | Apr 3, 2020 11:09:03 PM | https://www.thehindu.com/business/Industry/irctc-ipo-subscribed-325-times-till-october-1/article29567989.ece

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