The IPO launch will mark the revival of IPO market, as broader market sentiment improved after Finance Minister Nirmala Sitharaman announced major corporate tax cuts. Equity benchmark Sensex is up around 8 per cent from Thursday’s close.
The IPO, whose price band has been fixed at Rs 315-320 per share, will close on October 3. The issue comprises an offer for sale of 2,01,60,000 shares and is a part of the government’s divestment process.
The book running lead managers to the offer are IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India).
The company was incorporated as Indian Railway Catering and Tourism Corporation on September 27, 1999, as a public limited company. As a CPSE, wholly owned by the government and under the administrative control of the Ministry of Railways, IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
It operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 15 to 18 million transactions per month during the three months ended June 30, 2019.
It was conferred the mini–ratna status by the Government of India on May 1, 2008. The company has diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotel.
Its sales rose 25 per cent year-on-year to Rs 1,899 crore, and profit grew 23.5 per cent to Rs 272.5 crore in financial year 2019, its draft red herring prospectus filed with Sebi in August showed.
