Indian Railway Catering and Tourism Corporation (IRCTC), which is the only entity authorized by Indian Railways to provide catering services to the Indian Railways, is planning to raise money via an initial public offer (IPO). IRCTC is planning to sell 20,160,000 equity shares of face value of Rs. 10 each in the price band of Rs. 315-320 to raise up to Rs. 645 crore. The online ticketing arm of Indian Railways, IRCTC also provides packaged drinking water at railway stations and trains across the country. (Also Read | IRCTC IPO: Share Price, Valuation, Other Details)
After the public offer, Government of India’s holding in IRCTC will come down to 87.40 per cent. IRCTC aims to achieve the benefits of listing the equity shares on the stock exchanges.
Here are key details about the IRCTC IPO, including important dates, lot size and issue price:
Investors can bid for IRCTC shares in the price band of Rs. 315-320 per lot (40 shares). The retail investors and employees of IRCTC are being offered a discount of Rs. 10 per share.
The IPO will open on September 30 and last date for bidding will be October 3.
IRCTC market value
IRCTC’s market capitalisation after the conclusion of the IPO will be Rs. 5,040 crore – Rs. 5,120 crore.
While 50 per cent of the IRCTC IPO is reserved for qualified institutional buyers, 15 per cent is reserved for non-institutional buyers and 35 per cent for retail investors. The company has set aside 1.6 lakh shares in the IPO for its employees.
IDBI Capital, SBI Capital Markets and Yes Securities are the book running lead managers of the IPO and Alankit Assignments is the registrar.