IRCTC makes stock market debut, shares double on market listing

Shares of Indian Railways Catering and Tourism Corporation (IRCTC) made its debut on the Bombay Stock Exchange and National Stock Exchange on Monday. The shares of IRCTC almost doubled after its listing on the market.

Before markets opened on Monday, IRCTC shares settled at Rs 644 on the Bse while it touched Rs 626 on the NSE. The issue price of IRCTC shares was fixed at Rs 320.

The IPO of IRCTC was subscribed a massive 112 times after it opened on September 30. The retail category was subscribed nearly 15 times while qualified institutional buyers (QIBs) segment saw at least 109 subscriptions.

The issue comprised an offer-for-sale of over two crore shares with a face value of Rs 10 each. Many analysts recommended investors to subscribe the IRCTC IPO after pointing out potential listing gains.

In the grey market, IRCRC shares are being quoted a premium of Rs 240 per share, which translates into a gain of over 70 per cent from the issues price, reported news agency IANS. IRCTC’s share figures make it the best PSU and most successful IPO in the last two fiscals in terms of overall subscriptions.

It is worth noting that Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the merchant bankers who handled the issue while Alankit Assignments was the registrar. The share allotment occurred on October 10.

With the IPO listing, the government earned nearly Rs 650 crore from the sale of shares and its stake in IRCTC has now reduced to 87.4 per cent. Customers should also note that IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam and ICRON.

The company reported a net profit of over Rs 272 crore in the fiscal year 2019 from Rs 220 in the previous year. The company’s revenue grew to Rs 1,867 crore in FY19 from Rs 1,470 crore in FY18.

[“source=indiatoday”]