'Ek ka double' becomes an object! Hitting at Rs 698 against Rs 320, IRCTC IPO does 100% listing gain on day one

News Bharati    14-Oct-2019
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Mumbai, October 14: Making a star entry in the financial markets, the shares of IRCTC more than doubled on their listing at BSE and NSE on Monday. The price hit as much as 118% to ₹698, as compared to issue price of ₹320 on BSE while it was ₹698 at day's high at NSE.

 
 
With this the shareholders have started their celebrations ahead of the upcoming festivals. The IPO of IRCTC, which was open for subscription between September 30 and October , was subscribed a massive 112 times. The retail category was subscribed nearly 15 times while qualified institutional buyers segment got subscribed 109 times and non-institutional investors category 355 times.
 
The issue price was fixed at ₹320 per share. Since retail investors received shares at a discount of ₹10 per share, for them the issue price is ₹310 per share. The slated IPO comprised an offer for sale of 2.01 crore shares of face value of ₹10 each.
Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the merchant bankers of the issue while Alankit Assignments was the registrar. The share allotment happened on October 10 and the government mopped up nearly ₹650 crore from the sale of shares of IRCTC and its stake is now down to 87.4%.
 
IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam and Ircon. It enjoys a monopoly in its business as it is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.