IRCTC IPO breaks all record – Subscribed 112 times
On Thursday 3rd October, initial public offering (IPO) of Indian Railway Catering and Tour Corp. (IRCTC) was closed and has recorded to have the highest-ever subscribers for a public issue of a company which is owned by government.
NSE data shows that the IPO which was aimed to raise Rs. 645 Cr. was subscribed 112 times and received a bid of over Rs. 225 Cr. shares when compared to the total size which was Rs. 2.02 Cr. for Rs. 315 to Rs. 320.
According to the Prime Database, IRCTC became the first-ever public sector undertaking (PSU) who’s IPO has been subscribed for over 100 times. In the year 2017, IPO of Housing and Urban Development Corp. (HUDCO) was subscribed for 79 times and the IPO of Cochin Shipyard was subscribed 76 times. In 2018, Rites Ltd. IPO was subscribed 67 times. At present, the IPO of IRCTS has the strongest demand for all types of investors.
The part which was saved for the people having high net worth was subscribed 354 times and the portion which was reserved for retail was subscribed 14.65 times.
The portion which was saved for the employees had always seen a lower subscription rate but this time it was also subscribed 5.80 times. The company has decided to offer a discount of Rs. 10 to all the application in the category of retails and employees.
Investors of institution have also put heavy bids as the portion was subscribed almost 109 times.
IRCTC is Indian railways online ticket booking, tour and catering service and it is the only government body to be authorised by the Ministry of Railways to give these services to the railways like online ticket booking and packed drinking water at different railway stations across India.
IPO is part of the government’s disinvestment programme and all these offerings will lead to the Ministry of railways which are holding 87 per cent of the stakes.
Main revenue of IRCTC comes from catering services (55%), tourism (23%), ticket booking (12%) and Rail Water (10%).
When the company reported their net profit at the end of this finical year on March 31, it was higher than the last year’s net profit i.e. Rs. 272 Cr. in 2019 and Rs. 220 Cr. in 2018
This company has a cash reserve of over Rs. 1,140.04 Cr. as on March 31 2019 and it is completely debt-free.