IRCTC shares to be listed on stock market on Monday, 14th October

IRCTC

“The Indian Railway Catering and Tourism Corporation (IRCTC), which recently concluded its Initial Public Offering (IPO) will be list its shares on the stock market on Monday, 14th October. The shares will be listed on both, the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange).

“Effective from Monday, October 14, 2019, the equity shares of Indian Railway Catering and Tourism Corporation Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B ‘ Group of Securities,” the BSE said in a circular issued on 11th October 2019.

The IPO was oversubscribed 112 times at a price band of Rs 315 to Rs 320 per share. State-owned IRCTC, which sells tickets for Indian Railways and manages its catering services, is expected to raise Rs 500-600 crore through its IPO. The government is looking to offload up to 20 million shares in IRCTC, following that the government’s stake in IRCTC will come down by 12.5 per cent.

IRCTC’s business is divided into four segments — internet ticketing, catering, packaged drinking water under the ‘Rail Neer’ brand, and travel and tourism. While its sales rose 25% to Rs 1,899 crore, its profit grew 23.5% to Rs 272.5 crore in the fiscal year 2019, compared to last fiscal.

Read: Tejas Express is the REAL reform: Indian Railways on road to privatisation

IRCTC is the subsidiary of Indian Railways and handles online ticketing, catering and tourism operations. The IRCTC is one of the most visited websites in the Asia-Pacific region, with a transaction volume of more than 25 million per month, and 7.2 million logins per day. About 800,000 tickets are booked every day through the IRCTC website and Rail Connect.

However, catering has been the company’s biggest contributor to sales over the years. While more than half of its revenues at Rs 1,044 crore came from its catering business in 2019, internet ticketing business contributed about 12% of its revenue. The remaining Rs 444 crore came from its tourism and travel-related services and Rs 176 crore from its Rail Neer packaged drinking water business.”

This post was last modified on October 14, 2019 10:16 pm

Disqus Comments Loading...