IRCTC IPO

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 specialised 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 108.79x
NII 3,000,000 0.21x 1.73x 354.52x
Retail 7,000,000 2.23x 6.21x 14.83x
Employee 160,000 1.15x 2.64x 5.81x
Total 20,160,000 0.81x 3.25x 111.91x

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

(3) Comments

  1. Remember sometimes back ipo of ircon came @465.and investors are weeping. It is running below 390. Govt companies are inhaitated by bribery employees think only for salaries and facilities. What happens to the institution is not their worry. Think twice before investing.

  2. GMP 185+/- 2
    Kostak 1,300/-

    IRCTC IPO – *Market’s Current Estimates of oversubscription*:

    RII = 10.50L Forms = 6XApplic. Wise (Agv allotment of ~ 6.67 shares per lot)
    NII = 35K Crs. = ~364.58X

    Interest cost @8.0%p.a. for 7days = 49.10paise for 1X

    Thus, for NII the costing = 364.58 X 46.03paise = Rs.179.00 per share (= GMP)

    And, for RII the costing = 6.67 X (179.00+10) = Rs. ~1260/- (= Kostak)

    TO JOIN OUR WHATSAPP GROUP SEND “YOUR NAME AND CITY” ON OUR WHATSAPP NUMBER 9122-182-978. ONLY ON WHATSAPP

    #EAGLEYE

Leave A Comment

All fields marked with an asterisk (*) are required