IRCTC IPO from Indian Railway IPO Review, Dates, Price Bands, Market Lot, IRCTC IPO Grey Market Price Details
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) to raise around 645 crores via IPO and files DRHP.
IPO stands for Initial public offering. In the year 2017 – 2019, many companies made a stellar debut on a stock exchange.
The exciting news for the investors is IRCTC received approval from the market regulator SEBI to float its Rs 645 crore IPO.
The IPO comprises of an offer for sale of 2 crore shares (representing 12.50 percent of total paid-up equity) by the Ministry of Railways. There would also be additional employee reservation portion of 1.6 lakh shares, taking the total offer size to 12.6 percent of total paid-up equity.
IRCTC IPO – Issue Details:
| Issuer | Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) | |
| Issue Type | 100% Book Built Issue IPO | |
| Issue Period | Issue Opens: SEP 30, 2019 | |
| Issue Closes: OCT 03, 2019 | ||
| Price Brand | ₹315 to ₹320 Per Share | |
| Issue Size | Rs.645.12 Crores | |
| Face Value | Rs.10 per Equity Share | |
| Bit Lot | 40 Equity Shares and in multiples thereof | |
| Maximum Bid amount for Retail | Rs. 2 Lakhs | |
| Institutional | 50% of the issue size | |
| Corporate | 15% of the issue size | |
| Retail Individual Bidders | 35% of the issue size | |
| Listing | NSE & BSE | |
| UPI | ||
| Registrar | Alankit Assignments Limited | |
| Book Running Lead Managers | IDBI Capital Markets & Securities, SBI Capital Markets and Yes Securities (India) | |
| Upcoming IPO 2019 | Upcoming NCD 2019 |
Overview of IRCTC
IRCTC Limited (Indian Railway Catering And Tourism Corporation Limited) was incorporated with the objective to upgrade, modernize and professionalize catering and hospitality services, managing hospitality services at railway stations, on trains and other locations and to promote international and domestic tourism in India through public-private participation.
The company has conferred the status of Mini – Ratna (Category-I Public Sector Enterprise) by the Government of India, on 1 May 2008.
Below are four significant business segments of the firm: –
- Internet Ticketing: – The company offers its own website and mobile applications to book online railway tickets. Approx. 0.80 million tickets have been booked through its website irctc.co.in and “Rail connect”.
- Catering: – IRCTC facilitates food catering services to Indian Railways passengers on trains and stations. It runs catering services through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars over the Indian Railways network. “Food on track” is its mobile app and ecatering.irctc.co.in its website for catering.
- Packaged drinking water (Rail Neer): The company is one of the authorized entity by the Ministry of Railways to manufacture and provide packaged drinking water at each and every railway station and on trains.
- Travel and Tourism: – IRCTC also offers various tourism segments such as hotel bookings, rail, land, cruise and air tour packages, and air ticket bookings.
IRCTC IPO Dates & Price Band: (Tentative)
- IPO Open: 30-September-2019
- IPO Close: 03-October-2019
- IPO Size: Approx ₹645 Crore (Approx)
- Face Value: ₹10 Per Equity Share
- Price Band: ₹315 to ₹320 Per Share
- Listing on: BSE & NSE
- Equity: 2,01,60,000 Shares
- Discount: ₹10 for Retail & Employees
- Allocation: QIB: 50%, HNI: 15%, Retail: 35%
- Tips for Investing in IRCTC IPO
IRCTC IPO Market Lot:
- Shares: Apply for 40 Shares (Minimum Lot Size)
- Amount: ₹12,400 for Retail & Employee
- Amount: ₹12,800 for QIB & HNI
IRCTC IPO Allotment & Listing:
- Basis of Allotment: 09-October-2019
- Refunds: 10-October-2019
- Credit to Demat accounts:11-October-2019
- Listing: 14-October-2019
IRCTC IPO Review & Ratings
| IRCTC IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.2/10 |
| Industry Ranking | 8.0/10 |
| Company Background | 7.9/10 |
| Company Reputation | 8.0/10 |
| Competitive Edge | 8.2/10 |
| Financial Statements | 7.9/10 |
| Popularity Index | 8.5/10 |
| Promoters Reputation | 8.0/10 |
| Retail Appetite | 7.1/10 |
| Top Brokers Review | 8.2/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
IRCTC – Financial Statements
Financial Summary of IRCTC IPO
(iv) Revenue contribution from different verticals.
| Particulars( in cr) | 2019 | 2018 | 2017 |
| Internet Ticketing | 234 | 207 | 469 |
| Catering | 1044 | 740 | 398 |
| Packaged Drinking Water (Rail Neer) | 176 | 169 | 159 |
| Travel and Tourism | 444 | 403 | 528 |
| Total | 1898 | 1519 | 1554 |
| Amount (in INR & Millions) | |||
| 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 25,837.80 | 23,191.06 | 18,264.54 |
| Total Revenue | 19,566.60 | 15,695.60 | 16,028.50 |
| Total Expense | 15,266.97 | 12,239.27 | 12,477.82 |
| Profit After Tax | 2,725.95 | 2,206.19 | 2,290.81 |
Earnings per Equity Share (in millions)
| 31-Mar-2019 | 31 Mar 2018 | 31-Mar-2017 | 31 Mar 2016 | |
| Basic | 17.04 | 13.79 | 14.32 | 5.293 |
| Diluted | 17.04 | 13.79 | 14.32 | 5.293 |
From the above financial statements, one could clearly say that the railway’s subsidiary company has grown tremendously in the past few years.
Financials of IRCTC IPO:
(fig. in cr)
| Year | Revenue | EBITDA | OPM | PAT | NPM | Shares | EPS |
| 2017 | 1602 | 380 | 23.7% | 229 | 11.4% | 4.000 | 14.3 |
| 2018 | 1569 | 372 | 23.7% | 220 | 10.9% | 4.000 | 13.8 |
| 2019 | 1956 | 461 | 23.6% | 272 | 13.5% | 16.000 | 17.0 |
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IRCTC IPO Grey Market Premium
The IRCTC IPO Grey Market Premium is Rs 140-Rs 150, Kostk is Rs 1000, and Subject to Sauda is 5000.
How to Apply for IRCTC IPO?
If you have a Demat account, most banks offer the online IPO application. You can also contact the broker to apply in HDB Finance IPO?
Most banks including the SBI bank, ICICI Bank, Axis, and Kotak bank allow the customer to apply in IPO using the Demat account.
IRCTC IPO Registrar:
Alankit Assignments Limited
205–208, Anarkali Complex
Jhandewalan Extension
New Delhi 110 055
Delhi, India
Tel:011 42541954/933/ 022 4348 1293
E-mail: kamalarora@alankit.com/ abhijitd@alankit.com
Investor grievance E-mail: irctcigr@alankit.com
Website: www.alankit.com
Contact Person: Kamal Arora/ Abhijit Deb/ Virender Sharma
IRCTC IPO Lead Managers:
- IDBI Capital Markets & Securities Limited
- SBI Capital Markets Limited
- YES Securities (India) Limited
Company Address:
Indian Railway Catering and Tourism Corporation Ltd.
11th Floor, B-148, Statesman House, Barakhamba Road, New Delhi – 110001
Delhi, India
Contact Person: Suman Kalra, Company Secretary, and Compliance Officer;
Telephone: +91 11 2331 1263 /64
E-mail: ipo@irctc.com
Website: www.irctc.com
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