IRCTC IPO gets 112 times offer

The initial public offering of Indian Railway Catering and Tourism Corporation (IRCTC), the online ticketing, tourism and catering arm of the Railways, received a huge response on the last day of the public issue, with the overall subscription reaching 111.92 times the total number of shares on offer.

By data available at 6 pm, the issue was subscribed 108.79 times by qualified institutional buyers, 354.52 times by non-institutional or high net worth individuals and 14.65 times by retail individual investors.

Pranav Haldea, Managing Director, Prime Database, a capital markets database provider said, “Besides small issue size of IRCTC, the pricing is conservative, as it’s a virtual monopoly and the fundamentals of the company are strong.”

The IPO of 2.016 crore equity shares aiming to raise approximately Rs 645 crore at the upper end of the price band was offered at Rs 315 to Rs 320 per equity share of Rs 10 face value.

Investors in the retail category and eligible employees of IRCTC were offered a discount of Rs 10 per equity share on the offer price to be fixed after closure of the public issue.

The IPO is an offer for sale of 12.5 per cent stake by government, post listing of the public issue government will hold 87.5 per cent stake in IRCTC.

IRCTC will not receive any proceeds from the IPO and all proceeds will go to government.

The book running lead managers to the offer are IDBI Capital Markets & Securities, SBI Capital Markets, and YES Securities.