IRCTC IPO opens today: Key things to know

New Delhi, Sep 30: The state-run Indian Railway Catering and Tourism Corporation's (IRCTC) initial public offer (IPO) will open for subscription today.

IRCTC has reportedly fixed the price band for its initial share sale offer between Rs 315 and 320 per share.

IPO details

IRCTC''s public offer to raise about Rs 645 crore received bids for more than 67 lakh shares against the total issue size of over 2 crore shares, as per exchanges'' data till 1300 hours. The company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder, the Government of India.

The issue comprises an offer for sale of 2.01 crore shares of face value of Rs 10 each.

Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees. Bidding for the offer of the railways'' tourism and catering arm will close on October 3 (Thursday).

Equity markets will be closed on Wednesday on account of "Mahatma Gandhi Jayanti".

YES Securities (India), SBI Capital Markets and IDBI Capital Markets & Securities are the managers to the offer.

IRCTC is the only entity authorised by the Indian railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India, according to the draft red herring prospectus (DRHP).

IRCTC generated Rs 1,957 crore revenue during FY19, a rise of 25 percent from the previous fiscal, the firm's DRHP stated. The PSU's net profit jumped 23.5 percent on-year to Rs 272.60 crore during fiscal 2019.

OneIndia News (with agency inputs)