IRCTC IPO set to open on September 30; Price band announcement today

New Delhi, Sep 25: Indian Railway Catering and Tourism Corporation (IRCTC), a state-owned firm which handles ticket-booking and catering for the Indian Railways, is expected to launch its initial public offering (IPO) on September 30.

Reportedly, the government is looking to offload up to 20 million shares in the company through the IRCTC IPO, which will help in raising Rs 500-600 crore. The IPO is likely to cut the government's stake in IRCTC by about 12.5%.

As many as 2 crore equity shares of face value of Rs 10 each would be offered for sale by the government, reports news agency PTI.

"We are working to bring IPO of Indian Railway Catering and Tourism Corporation (IRCTC) and IRFC by September. IRFC may have to go to Cabinet again after elections," an official had said.

IRFC raises funds from capital markets and through borrowing for funding expansion plans of the Indian Railways. IRCTC handles the catering and tourism activity of the railways.

While IRCTC IPO could fetch about Rs 500 crore, public offering of IRFC could garner close to Rs 1,000 crore to the government.