IRCTC makes a blockbuster debut

Indian Railway Catering and Tourism Corporation (IRCTC) has made a stellar debut on the bourses and more than doubled the wealth of investors, as the government-run entity listed at Rs 644 on the BSE as against the issue price of Rs 320.

The stock closed the first day of trading with a steep gain of 127.69 per cent at Rs 728.60 on the BSE and at Rs 727.75 on the NSE. Intra-day it hit a high of Rs 743.80.

The Rs 645-crore initial public offering of IRCTC had received huge investor response, with overall demand at 112 times the shares on offer between September 30 and October 3. The shares of Rs 10 face value were offered to the public at Rs 320 a share.

The market capitalisation of IRCTC at the close of first day’s trading stood at Rs 11,657.60 crore.

Speaking at the listing ceremony on the BSE, Mahendra Pratap Mall, Chairman and Managing Director, IRCTC, said, “We have more than doubled the wealth of investors. This showcases the trust of our customers and stakeholders on the brand called IRCTC and the services it provides. The investor demand exceeded shares on offer by 112 times, making us the most sought after state-run firm.”

“With the company’s diversification plans for future and growing services across categories, IRCTC aims to stand out as a full-service hospitality and tourism brand of India,” Mall added.

Mustafa Nadeem, CEO, Epic Research said, "This is a very unique business model in India that is listed and also very robust numbers in its business segment for the last three years. So for long-term it’s a definite hold.”