IRCTC IPO Launch Date, Details, Review, GMP

IRCTC IPO Launch Date, Details, Review, GMP

IRCTC ( Indian Railway Catering and Tourism Corporation Limited ) is a wholly-owned subsidiary of Indian Railways. So, this is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. The content is about IRCTC IPO.

IRCTC Issue Details :

  • IPO Opens on – Sep 30, 2019
  • IPO Closes on – Oct 3, 2019
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs 315 – Rs 320 Per Equity Share
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 19 Shares.
  • Minimum Order Quantity – 40 Shares
  • Issue Size – 20,160,000 Eq Shares of Rs 10
    (aggregating up to Rs 645.12 Cr)
  • Listing Exchange – BSE, NSE.
  • Draft Prospectus – Click Here

Objectives of the Issue

  • To carry out the disinvestment of Equity Shares by the Selling Shareholder constituting IRCTC’s paid-up Equity Share capital
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges of this company.

About the Company

  • IRCTC was incorporated in 1999.
  • This company handles tourism, catering, online ticket booking services and provides packaged drinking water in trains and at railway stations in the country.
  • IRCTC was conferred as a Mini-Ratna or Category-I Public Sector Enterprise by the Indian Government in 2008.
  • However, in the last three months ended on 30th June, nearly 15 to 18 million transactions were placed per month through the IRCTC website.
  • IRCTC also provides non-railway services including budget hotels, e-catering, and executive lounges to create a one-stop solution for customers.
  • Besides this, this Company provides food catering services to Indian Railway passengers on trains and at stations.
  • IRCTC provides catering services for approximately 350 pre-paid and post-paid trains and 530 static units and also provides catering services through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars over the Indian Railways network.
  • This Company offers e-catering services to passengers through our mobile application “Food on Track” and our e catering website, www.ecatering.irctc.co.in.
  • The company also operate executive lounges, budget hotels, and retiring rooms for the convenience of the traveling passengers on Indian Railways.

IRCTC Business Segment

IRCTC has multiple and varieties of the business segments. These are described below:

Travel & Tourism service

Though IRCTC is specialized in rail tourism, it offers travel and tourism services across diversified segments such as air, land, rail, & cruise tour packages, hotel bookings and air ticket bookings.

IRCTC ipo holidays

Rail Neer

Now, it is an authorized manufacturer and distributor of packaged drinking water on trains and at railway stations. The company manufactures packaged drinking water under brand name Rail Neer.

e-catering service

Catering Services The company provides food catering services including on-board catering (through mobile) on trains and static catering services at stations.

irctc mobile app

Now, internet Ticketing IRCTC has a mobile app and a dedicated website to offer online railway ticket booking facility.

Services

So, apart from the above services, there are a few more:

  • Stay
  • Rail Drishti
  • Holiday Packages
  • Tourist Train
  • Charter Train
  • Hill Railways

Location

Registered Office / Corporate Office –
Indian Railway Catering and Tourism Corporation Limited
B-148, 11th Floor, Statesman House,
Barakhamba Road, New Delhi 110001.

The Promoter of IRCTC :

  • The President of India acting through the Ministry of Railways is the promoter of this company.

The Board of Directors of this company

  • Mahendra Pratap Mall, aged 58 years, is the Chairman and Managing Director of this Company.
  • Rajni Hasija, aged 56 years, is the Whole-time Director (Tourism and Marketing) of the Company.
  • Narendra, aged 50 years, is the Director (Finance) of this Company.
  • Neeraj Sharma, aged 55 years, is a Part-time Government Director of the Company.
  • Smita Rawat, aged 57 years, is a Part-time Government Director of this Company.
  • Kanak Aggarwal, aged 63 years, is a Part-time (non–official) Director of this Company.
  • Sarita Deshpande, aged 60 years, is a Part-time (Non-official) Director of the Company.
  • Rabi Narayan Bohidar, aged 70 years, is a Part-time (non–official) Director of this Company.
  • Dheeraj Sharma, aged 43 years, is a Part-time (non–official) Director of this Company.
  • Comal Ramachandran Sundaramurti, aged 67 years, is a Part-time (Non-official) Director of this Company.
  • Sachin Chaturvedi, aged 51 years, is a Part-time (Non-official) Director of the Company.

Business strategies of this company :

  • Diversifying and offering new services to the passengers of Indian Railways and others.
  • Continue to leverage the Government’s policy relating to their business.
  • Strengthen products and services offering online.
  • Strengthen operational efficiencies.

Why Choose IRCTC?

IRCTC is one of the best innovative addition from Central Govt of India. Before it, the general public faced many problems. So, let’s compare both the before after era of IRCTC.

Pre IRCTC Era

This is the picture of the pre-IRCTC era. As you can see the long line before the rail ticket booking counter.

Post IRCTC Era

Now, see how easily you can book tickets from home. The process is quite easy and simple. First, you have to go to the official website, https://www.irctc.co.in. Then you will get a window like this.

Irctc ipo

See, for example, purpose, I have added from Sealdah station to NJP and select the date and, flexible with date option for booking ticket. And, click on find train. Once you click a train list will be opened.

Irctc ipo ticket

As you can see the available options are also there. Check the availability option and book your desired ticket.

Competitive Strengths of this company

  • Authorized by the Ministry of Railways to offer Indian Railway tickets online.
  • Authorized catering service provider to passengers traveling by Indian Railways.
  • Comprehensive tourism and hospitality service provider in India.
  • Exclusively authorized for manufacturing and supplying packaged drinking water at a railway station and trains.
  • Robust operating system and internal controls.
  • Qualified and experienced employees and management team.

Company Financials :

IRCTC ipo finance

IRCTC IPO Review

So, the attachment reflects the previous three years of data. Among the years, FY19 is the highest profit-making years. In contrast, FY18 and FY17 are low-income generators. Now, we will move towards the DRHP (draft red herring prospectus). EPS (earnings per share) was at 17.04 (as of FY19). PE ratio is not available in the prospectus. RoNW (Return on Net Worth) and NAV/Share are 26.14 and 65.18 in the financial year. So, primarily based on the fundamental data, IRCTC IPO review carries a POSITIVE view. If you have money SUBSCRIBE it.

IRCTC IPO GMP

Now, we will discuss another valid point on this IPO. Almost daily, multiple IPOs has been releasing. So, it is quite confusing to choose the best among them. In that case, you may consider checking GMP. Hence, GMP is a grey market premium, an unofficial and unregulated buying, and selling of IPO. So, let’s check what’s the rate going on? IRCTC IPO GMP is running between 105-110. For details, go through our page on Grey market premium. It’s Kostak rate is 650. (the price at which IPO is sold out of the market transaction before listing or allotment of the IPO issue)

Conclusion

So, IRCTC IPO is obviously going to be a positive aspect of the Indian economy. Many investors are looking forward to this IPO. Therefore, it is advisable to go through the above details, then take the decision.

Author: Ankita Sarkar

Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. She is a NISM certified Research Analyst. An experienced stock market content writer Ankita is also trading successfully on her own account.

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