IRCTC IPO: IRCTC's 'Initial Public Offer' subscribed 111 times so far on D-day

IRCTC IPO, an initial public offering of Indian Railway Catering and Tourism Corporation (IRCTC), which opened for subscription on Monday, was subscribed 111 times so far on the final day of bidding on Thursday.

The IPO issue had received bids for 2,25,09,16,400 shares against the issue size of 2,01,60,000 shares, according to data available with the exchanges so far. 

IRCTC's IPO was subscribed 3.25 times till the second day of bidding on Tuesday. Equity markets were closed on Wednesday on account of 'Mahatma Gandhi Jayanti'.

The initial public offering (IPO) is in a price range of Rs 315-320 per share. The issue comprises an offer-for-sale of 2.01 crore shares of face value of Rs 10 each. Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees.

The government is offering 2 crore equity shares or 12.6% stake through this IPO. Post-IPO, the government's stake will fall to 87.4%. The offer is being managed by YES Securities (India), SBI Capital Markets and IDBI Capital Markets & Securities

About IRCTC Shares:

The total share dilution constitutes to about 12.60 per cent of IRCTC's paid-up equity share capital. The minimum bid lot of the IPO is 40 equity shares, thereafter orders can be placed in the multiples of 40 equity shares.

Currently, it operates in four business segments, namely, Internet Ticketing, Catering, Packaged Drinking Water and Travel and Tourism.

The firm has consistently made profits over the years. In FY 2019, its net profit rose to Rs 272.6 crore from a profit of Rs 220.62 crore reported for FY18.

Moreover, the company's revenue from operations has grown to Rs 1,867.88 crore in FY19 from Rs 1,470.46 crore earned during FY18.

The state-run entity is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.