INSUBCONTINENT EXCLUSIVE:
IRCTC IPO opens today: The public offer can be subscribed to in the lots of40 sharesIRCTC or Indian Railway Catering and Tourism
Corporation's Rs 645-crore initial public offer (IPO) will open for subscription today
IRCTC - the online ticketing arm of the Indian Railways - has set a price band of Rs 315-Rs 320 for the IPO
After the IPO, Government of India's holding in IRCTC will come down to 87.40 per cent
The IPO will close for subscription on October 3. The offer size in terms of amount makes it the highest among all the railway offerings
till date.Till now, the Indian Railways has come out with three IPOs of its subsidiaries: Rail Vikas Nigam Limited (RVNL), Rail India
Technical and Economic Service (RITES) and IRCON (Indian Railway Construction Company Limited). The IRCTC IPO will be the largest public
offer by the Indian Railways so far.The RVNL IPO was worth Rs 477.11 crore, whereas the IRCON and RITES public offers raised Rs 466.93 crore
and Rs 460.44 crore respectively.The IRCTC IPO comprises an offer for sale (OFS) of 2,01,60,000 shares of the face value of Rs 10
Of these, 1,60,000 are reserved for employees. All proceeds from the offer will go directly to the selling shareholder.The total share
dilution constitutes to about 12.60 per cent of IRCTC's paid-up equity share capital.The IRCTC IPO can be subscribed to in the lots of 40
That means orders can be placed in the multiples of 40 shares.IRCTC IPO - Angel Broking Recommends "Subscribe" Brokerage Angel Broking has
assigned a “subscribe” rating to the IRCTC IPO
The recent tax reduction by the government and the increase in revenue from the service charge for online ticketing will improve IRCTC's
profitability substantially going forward, Angel Broking said in a note. “There is also significant opportunity for the Company to ramp
up the catering business given a very large captive audience which is currently being underserved
Increasing business volumes from catering and Packaged drinking water businesses, along with service charge for online ticket booking will
drive earnings growth for the company between FY19-21,” Angel Broking said. IRCTC BackgroundState-run IRCTC is the only entity authorised
by the Indian Railways to provide catering services to railways, online railway tickets, and packaged drinking water at railway stations and
trains in India. Currently, IRCTC operates in four business segments: Internet Ticketing, Catering, Packaged Drinking Water and Travel and
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