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Business News/ Markets / Stock Markets/  After stellar stock market debut, IRCTC shares continue to rise

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) continued to trade higher, after making a strong debut on BSE Ltd and National Stock Exchange Ltd (NSE) on Monday. The stock was trading at 123% premium to issue price of 320 per share.

The stock was listed at 644 apiece today, and at 1:25 pm, was at trading at 711.2. However, the shares were off day’s high of 743.8.

The initial public offering (IPO) of 645 crore concluded recently and was subscribed 112 times at a price band of 315-320 per share, making it the most successful share sale since January 2018. The IPO was open for subscription from 30 September-4 October.

Despite a lull in the IPO market where investors have been treading cautiously due to slowdown in the economy, the IPO received bids for 225.6 crore shares compared to the total offer-for-sale size of 2.01 crore shares of face value of 10 each, according to data on the NSE.

Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the merchant bankers of the issue and Alankit Assignments was the registrar. The share allotment took place on 10 October. The government collected nearly 650 crore from the sale of shares of IRCTC.

IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam Ltd and Ircon International Ltd. The government now owns 87.4% stake in the railway tourism company.

IRCTC reported a net profit of 272.6 crore in 2018-19, up from 220.6 crore in the previous financial year. The company's revenue grew to 1,867 crore in FY19 from 1,470 crore in FY18.

IRCTC enjoys a monopoly in its business as it is the only entity authorised by Indian Railways to provide catering services to the railways, online railway tickets and packaged drinking water at railway stations and trains in India.

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Updated: 14 Oct 2019, 01:54 PM IST
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