Mumbai: Indian Railway Catering and Tourism Corporation (IRCTC), the railways' tourism and catering arm, on Thursday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for its proposed initial public offering (IPO).
As per the DRHP Government will offload 12.50 per cent stake in IRCTC through the IPO.
According to market sources, the IPO, which will be an offer for sale, would raise around Rs 500 to Rs 600 crore. The issue comprises of 2 crore equity shares, of face value of Rs 10 each.
IRCTC operates one of the most transaction heavy railway ticket booking website, 'www.irctc.co.in' in the Asia-Pacific region with transaction volume averaging at 25 million per month and 7.2 million logins a day.
Over 1.4 million passengers travel on a daily basis of which 71.42 per cent book their tickets online. Between FY14-19, online bookings have grown at a CAGR of 12.5 per cent.
At a premium of only 49 paise, IRCTC offers an optional travel insurance between Rs 0.75 million — Rs 1 million to its passengers. As of June 30, 2019, over 900 million passengers have opted for this travel insurance.
IRCTC was conferred the status of "Mini-ratna" (Category-I Public Sector Enterprise) by the government on May 1, 2008.
IRCTC has also diversified into other business segments like e-catering, executive lounges and budget hotels. The book running lead managers to the offer are IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities.