Indian Railway Catering and Tourism Corporation (IRCTC) had a stellar start on October 14 as it listed at Rs 644 on the BSE, a 101.25 percent premium over its issue price of Rs 320 per share.
In fact, the opening price was much higher than what the street had expected and grey market had suggested. Analysts who spoke to Moneycontrol had expected it to list at around Rs 500-530 per share and the grey market premium was around 65 percent over the IPO price.
On the National Stock Exchange, the stock listed at Rs 626, up 95.6 percent over the issue price.
At 1011 hours, the stock was trading at Rs 670.50 on the BSE, up Rs 350.50, or 109.53 percent, from the IPO price after hitting an intraday high of Rs 688.75 (up 115.23 percent). Compared to its opening price of Rs 644, it was up 4.11 percent.
On the National Stock Exchange, IRCTC was trading 110.38 percent higher at Rs 673.20 against issue price and up 7.54 percent over the opening price.
In volume terms, it traded with 20.52 lakh shares on the BSE and 1.59 crore shares on the NSE.
The IRCTC listing is the best in the last two calendar years. Data shows that there have been five listings in the past at over 100 percent, in fact, better than what IRCTC witnessed today. Take a look at the chart below.
Investors who invested in the IRCTC IPO doubled their money in a single day. Retail investors and employees earned Rs 10 more for each share, as they got shares at a discount of Rs 10 per share.
The Rs 638-crore public issue was subscribed 112 times during September 30 and October 3 and the issue price was fixed at Rs 315-320 per share.
IRCTC is a Mini-Ratna Category-I Public Sector Enterprise and a wholly-owned subsidiary of Indian Railways, the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets for trains in India. It also provides non-railway services including budget hotels, e-catering and executive lounges to create a one-stop solution for customers.
The public issue had comprised an offer for sale of 2,01,60,000 equity shares. The shareholding of government in the railways' tourism and catering subsidiary reduced to 87.40 percent post issue.
The state-owned entity operates in four business segments—internet ticketing, catering, packaged drinking water, under the Rail Neer brand, and travel and tourism.
The internet ticketing segment contributed 12.35 percent to its FY19 revenue against 13.63 percent the previous year. The catering business accounted for 55 percent of the revenue against 48.70 percent in FY18. Packaged drinking water counted for 9.28 percent revenue against previous year’s 11.13 percent, while travel and tourism 23.38 percent against 26.54 percent.
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