IRCTC shares started off strong on Monday as they listed at Rs 644, a 101.25 premium at an issue price of Rs 320.
At 10.54 am, the issue was trading 114.41 percent at Rs 686.10.
A strong listing was given as the stock was quoted in the gray-market last week at a premium of Rs 220–227 per share, with the IPO receiving a subscription 112 times during the September 30 – October 4 offering period.
The category was subscribed 108.79 times to qualified institutional buyers (QIB), 354.52 times to non-institutional investors (NII) quota and 14.65 times to retail investors.
At the issue price, the stock is quoted at a FY19 EPS of Rs 17.
IRCTC is the only unit authorized by the Indian Railways to provide railways, online railway tickets and packaged drinking water to railway stations and trains in India.
In May 2008, IRCTC was given Mini-Ratna status.
Anand Rathi Financial Services said the company’s revenue should shoot up over the next 1-2 years due to convenience fees and privatization of the two routes. In addition, the company will get an additional benefit of up to 25 percent from the recently effective tax-regime, it said.
IRCTC shares more than doubled from the start of its listing on BSE and NSE. On the BSE, they. The value of 320 rose by 118% to as much as 698 as compared to the issuance. They also reached a high of 698 days in the NSE. At 10:30 am, IRCTC shares have retained most of their gains and are trading near am 685 on the BSE. The IPO of IRCTC, which was open for membership between 30 September and October, was given a massive membership of 112 times. The retail category was subscribed nearly 15 times while the qualified institutional buyers (QIB) segment was subscribed 109 times and the non-institutional investors (NII) category was subscribed 355 times.
Issue price. 320 per share was fixed. Since retail investors have received shares at a discount of ₹ 10 per share, the issue price for them. 310 per share.
The issue involves the sale of an offer of 2.01 crore shares of face value of ₹ 10 each. Several analysts had recommended subscribing to the IRCTC IPO and also pointed to potential listing gains.
IRCTC, owned by billionaire Radhakishan Damani, more than doubled on listing in March 2017, ahead of Avenue Supermarts Ltd, as the company’s IPO received bids for 106 times the amount offered.
The IRCTC IPO consisted of the offering sale of 2.01 crore shares of face value of 10 each. Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the merchant bankers of the issue, while ornate assignments were registrars. The share allocation took place on 10 October. The government has withdrawn about 650 crore from the sale of shares of IRCTC and now its stake is 87.4%.
IRCTC is the fourth railway company to be listed on the bourse after RITES, Rail Vikas Nigam and IRCON.
IRCTC reported a net profit of ₹ 272.6 crore in FY19, up from ₹ 220.6 crore in FY18. The company’s revenue increased to ₹ 1,867 crore in FY19 and 1,470 crore in FY18.
IRCTC enjoys a monopoly in its business as it is the only entity authorized by the Indian Railways to provide railways, online railway tickets and packaged drinking water to railway stations and trains in India.