INSUBCONTINENT EXCLUSIVE:
IRCTC is selling 2.01 crore shares and at the upper price band the company is valued at Rs 5,120 crore.Indian Railway Catering and Tourism
Corporation's (IRCTC) three-day share sale via initial public offering (IPO) opened today for subscription and will end on October 3
The IRCTC IPO is an offer for sales wherein its promoter, Government of India, is selling its 12.6 per cent stake in the company to achieve
benefits of listing the equity shares on the stock exchanges
The proceeds from the IPO will go to the promoter of the company
IRCTC is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged
drinking water at railway stations and trains in India.IRCTC IPO Price Band:IRCTC is selling equity shares of face value of Rs 10 each in
the price band of Rs 315-320 in lot sizes of 40 shares per lot and in multiples thereof
At the upper price band the company will raise Rs 645 crore, according to a note shared by Anand Rathi
IRCTC's employees and retail investors are being offered a discount of Rs 10 per share.IRCTC Issue Size:IRCTC is selling 2.01 crore shares
and at the upper price band the company is valued at Rs 5,120 crore and at lower band the valuation is pegged at Rs 5,040 crore, according
to a note shared by Axis Capital
50 per cent of the total shares on the offer are reserved for qualified institutional buyers (QIBs), 35 per cent are reserved for retail
investors and 15 per cent is reserved for the non-institutional buyers.Should you invest in IRCTC IPO?"IRCTC has unique business model and
the company does not have any competition across any business segment
Based on various parameters like strong earnings profile, diversified business segment, healthy return ratio, debt free status and most
importantly monopoly business, we have a positive view on the issue," brokerage firm Anand Rathi said in an IPO note."The issue has been
offered at a price band of Rs 315-320 per equity share
At the upper price band of Rs 320, the stock is available at price to earnings multiple of 18.8 times to its FY19 earnings per share of Rs
We have a positive outlook for the company and we recommend investors to "Subscribe" to this issue," Anand Rathi's note adds."Recent tax
reduction by government to 25.2 per cent and increase in revenue from service charge for online ticketing will improve profitability
substantially going forward
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," Angel Broking said."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
We would therefore recommend to "Subscribe" to the issue," Angel Broking adds.Get Breaking news, live coverage, and Latest News from India
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