IRCTC IPO Share Price
Indian Railways annoyed over the pricing of IRCTC IPO. The IPO received an amazing response and listed at a 101 percent premium over its issue price. After this move, railways protests over IRCTC IPO issue Price.
As of the report, the national transporter protested the price of IRCTC IPO at which shares were offered to investors and also suggests taking better due diligence for future transactions, given the long pipeline of public offers of state-run companies.
As of the draft prospectus, the shares of IRCTC were issued at Rs 320 per equity share but listed at Rs 644 on BSE and Rs 626 on NSE. On Monday, the IRCTC shares price closed at Rs 728.60. The railway public sector undertaking (PSU) offer was the most successful issue by the state-run in terms of oversubscription.
Besides, the government has raised over Rs 645 crore for diluting a 12.6 percent stake in IRCTC, which valued at Rs 5,000 crore to the company, raising questions about the valuation undertaken by merchant bankers. IDBI Capital Markets, SBI Capital Markets, and Yes Securities Managed issue.
On Thursday, the share price closed at Rs 729.55. It just one percent of the first-day price.
IRCTC Business Model
According to the source, the IRCTC has a unique business model. E-catering, travel & tourism, packaged drinking water, and online ticket booking are the other business segments of IRCTC. The company had reported a net profit of Rs 273 crore on revenue of 1,956 crores in fiscal 2019.
The market experts said that the company has the potential to generate positive returns in the next two years.
As of the data, the IRCTC IPO proposal came after PM Modi’s demonetization act. Meanwhile, the firm had stopped collecting a fee for ticket booking.
The firm main business is ticketing and recently entered into the running trains business. IRCTC came around two years ago. At first, the railway minister Piyush Goyal refused the proposal of the IRCTC IPO plan because the company has valued at Rs 2,500 crores only.