Mumbai: Indian Railway Catering and Tourism Corporation (IRCTC), the railways’ online ticketing, tourism and catering arm announced its initial public offering aiming to raise approximately Rs 645 crore at the upper end of the price band.
The IPO, with a price band of Rs 315 to Rs 320 per equity share of Rs 10 face value, will open on September 30, 2019 and close on October 3, 2019.
IRCTC operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 25 to 28 million transactions per month during the five months ended August 31, 2019, the company said.
“It has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels. Currently, IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.”
The IPO which received market regulator Sebi’s approval just in a months time after filing of the draft red herring prospectus comprises an offer for sale of over 2.01 crore shares.
Investors in the retail category and eligible employees of IRCTC will be offered a discount of Rs 10 per equity share on the offer price to be fixed after close of the public issue.
The IPO is an offer for sale of 12.5 per cent stake by Government of India, post listing of the public issue Government will hold 87.5 per cent stake in IRCTC.
