IRCTC’s IPO Opens With 10% Initial Discount On September 30
The state-owned Indian Railway Catering and Tourism Corporation (IRCTC) is planning to offer an Initial Public Offering (IPO) at Rs. 315-320 per share. But IRCTC is offering 10% discount to retail investors and eligible employees. They can buy shares at Rs. 305-310.
Highlights of IRCTC’s IPO
- Government expects to raise around Rs. 628-638 crore with IPO
- It comprises of an offer for sale of 2 crore shares
- It represents 12.50% of total paid-up equity by the Ministry of Railways
- Addition of employee reservation portion of 1.6 lack shares increases the total paid-up equity to12.6%
- Issues and all proceeds from the IPO will go the selling shareholder
- The minimum lot is 40 equity share
Expected date of release for IPO
IRCTC’s IPO is expected to be launched on October 9 and the shared would be listed in both NSE and BSE on October 14. The biggest factor in the IPO is that IRCTC won’t receive any proceeds from the offer.
What is IRCTC?
Established in 1999, Indian Railway Catering and Tourism Corporation is a state-owned company. It has achieved the status of a Miniratna company within government companies. IRCTC provides many services in addition to selling train tickets. The government expects a huge response for its IPO. Also, the market is excited about the IPO. Government is also offering initial discount to make the offer lucrative.
- Online booking of train tickets
- Catering and tourism in trains and railway stations
- Selling of bottled mineral water “Neer” in trains and stations
- Hotel bookings
- Cruise tickets