Published 15:23 IST, October 3rd 2019
IRCTC IPO faces oversubscription on last day of bidding
The Indian Railway Catering and Tourism Corporation (IRCTC) has offered a sale of the company receiving a healthy response on the third day of bidding
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The Indian Railway Catering and Tourism Corporation (IRCTC) has recently offered a sale of the public sector company. IRCTC received a healthy response on the final day of the bidding which was on October 3. The public issue has been now oversubscribed by 8.50 times. The initial public offering has received bids for 17,17,27,480 equity shares against the IPO size of 2.016 crore shares. The Indian Railways which is the fourth-largest rail network in the world caters to millions of people across the country. The IRCTC has been curating tour packages that are budget-friendly further helping travellers so that they can do away with the hassle of organising the tour.
IRCTC oversubscribed
The issue consisted of an offer for sale of 2,01,60,000 equity shares, with the price band for the IPO fixed at Rs 315-320 per share. Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees. The employees of the company along with the retail investors are to receive shares at a 10% discount to the final offer price. IRCTC is a Central Public Sector Enterprise which is authorised by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in the country. IRCTC witnessed a massive oversubscription on the final day of bidding given the strong valuations of the public sector company.
Indian Railway Catering and Tourism Corporation
IRCTC is a central public sector enterprise that is wholly owned by the Government of India under the administrative control of the Railway Ministry. The Indian Railway Catering and Tourism Corporation is a company that provides catering services to the Indian Railways. IRCTC is the only organisation with the legal authority given by the Indian Railways to provide catering services to people travelling from one part of the country to another. The IRCTC functions in four major segments. They are internet ticketing, catering, packaged drinking water, travel, and tourism. Recently, the website also updated its net profit to Rs. 272.60 crores.
13:38 IST, October 3rd 2019