IRCTC IPO
IRCTC was conferred the status of Miniratna (Category-I Public Sector Enterprise) by the government in May 2008.
IRCTC’s business is divided into four segments—
1) Internet ticketing
2) Catering
3) Packaged drinking water under the ‘Rail Neer’ brand
4) Travel and tourism
1) Internet ticketing
IRCTC is the only entity authorized by Indian Railways to offer railway tickets online. According to the draft prospectus, IRCTC’s website www.irctc.co.in is among the most transacted websites in the Asia-Pacific region. The company’s website and mobile app ‘Rail Connect’ have a transaction volume of more than 25 million per month and 7.2 million logins per day.
2) Catering
The company provides food catering services including on-board catering (through mobile) on trains and static catering services at stations.
3) Packaged drinking water under the ‘Rail Neer’ brand
It is an authorized manufacturer and distributor of packaged drinking water on trains and at railway stations. The company manufactures packaged drinking water under brand name Rail Neer.
4) Travel and tourism
IRCTC is specialized in rail tourism. It offers travel and tourism services across diversified segments such as air, land, rail, & cruise tour packages, hotel bookings and air ticket bookings.
Its sales rose 25% to ₹1,899 crores, profit grew 23.5% to ₹272.5 crores in fiscal 2019 over the previous year.
5) Offer for Sale Issue
As it is an offer for sale issue, the company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder
Strength of IRCTC IPO
1)IRCTC was conferred the status of Miniratna (Category-I Public Sector Enterprise) by the government in May 2008.
2) Internet Ticketing and Catering are the biggest money spinners for IRCTC and the former generated as much as 30% of IRCTC’s revenues in FY2017
3) IRCTC’s website www.irctc.co.in is among the most transacted websites in the Asia-Pacific region. The company’s website and mobile app ‘Rail Connect’ have a transaction volume of more than 25 million per month and 7.2 million logins per day.
4) IRCTC also offers packaged drinking water under the ‘Rail Neer’ brand and operate 10 plants with an installed production capacity of approximately 1.09 million liters per day
5) IRCTC’s financial performance is on a solid footing. Revenues and profits have increased many folds in the last three years while margins have been steady at roughly 14%.
IRCTC IPO Details
IPO Opens on: 30 September 2019
IPO Closes on: 3 October 2019
Price Band: Rs 315-320 per share
Bid Lot: 40 shares and in multiples of 40 shares
Maximum Price: Rs 12,800
Fresh issue: Rs 0
Offer for Sale: Rs 635.04-645.12 crore
IPO Size: Rs 635.04-645.12 crore
Retail & Employees Discount: Rs 10 per share
IRCTC IPO Time Line
Finalisation of Allotment: 9 October 2019
Initiation of Refunds: 10 October 2019
Transfer of Shares to Demat Account: 11 October 2019
Listing At: NSE & BSE
Listing Date: 14 October 2019
Financial Performance of (in Crores) IRCTC
FY19 | FY18 | FY17 | |
Total Revenue | 1,956.7 Cr | 1,569.6 Cr | 1,602.9 Cr |
Total Expense | 1,526.7 Cr | 1,223.9 Cr | 1,247.8 Cr |
Comprehensive Income | 272.9 Cr | 224.8 Cr | 231.1 Cr |
Net margin (%) | 13.9 | 14.3 | 14.4 |
IRCTC IPO Valuations
Face Value = Rs 10
Earnings Per Share (EPS) = Rs 17.04
PE Ratio = 18.48 – 18.77
Return on Net Worth (RONW) = 26.14%
Net Asset Value = Rs 65.18 per share
IRCTC IPO Subscription Details
Category | Shares offered | Subscription (no. of times, at 6 pm) | ||
Day 1 | Day 2 | Day 3 | ||
QIB | 10,000,000 | 0.00x | 1.65x | |
NII | 3,000,000 | 0.21x | 1.73x | |
Retail | 7,000,000 | 2.23x | 6.21x | |
Employee | 160,000 | 1.15x | 2.64x | |
Total | 20,160,000 | 0.81x | 3.25x |
Grey Market Premium of IRCTC IPO Day by Day
Grey market premium as on 03-10-2019 = Rs. 175-180/Share
Grey market premium as on 02-10-2019 = Rs. 175-180/Share
Grey market premium as on 01-10-2019 = Rs. 175-180/Share
Grey market premium as on 30-09-2019 = Rs. 140-150/Share
Grey market premium as on 29-09-2019 = Rs. 140-150/Share
Grey market premium as on 28-09-2019 = Rs. 140-150/Share
Grey market premium as on 27-09-2019 = Rs. 105-110/Share
Grey market premium as on 26-09-2019 = Rs. 105-110/Share
Grey market premium as on 25-09-2019 = Rs. 00-00/Share
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