The India Railway Catering and Tourism Corporation (IRCTC) made a strong debut in the stock markets on Monday. The IRCTC shares rose to Rs 673 at BSE and were trading at Rs 662 on NSE, almost double the issue price of Rs 320.
IRCTC is the fourth railway company to be listed on the bourses. IRCTC’s market valuation stood at Rs 10,972 crore in morning trade.
IRCTC’s is the best debut by a local company in the financial markets since 2017. Housing Urban Development Corporation. and Cochin Shipyard Ltd’s maiden IPOs were oversubscribed more than 75 times which was a record at that time.
“Effective from Monday, October 14, 2019, the equity shares of IRCTC Ltd shall be listed and admitted to dealings on the exchange in the list of ‘B ‘ Group of Securities,” BSE had said in a circular.
IRCTC had recently concluded its Rs 645-crore initial public offering. The IPO was subscribed 112 times at a price band of Rs 315-320 per share. It was open for subscription from September 30 to October 4.
The qualified institutional buyers category was subscribed 108.79 times, non-institutional investors 354.52 times and the retail investors segment was subscribed 14.65 times.
The issue comprised an offer-for-sale of 2.01 crore shares of face value of Rs 10 each. 1,60,000 equity shares were reserved for eligible employees. The merchant bankers for the issue were SBI Capital Markets, IDBI Capital Markets & Securities and Yes Securities India.
IRCTC is the only body in India that is authorized to sell railway tickets online, provide catering and drinking water to passengers at railway stations. IRCTC operates in four business segments and it also offers e-catering services to passengers via a mobile application.
