Shares of the Indian Railway Catering and Tourism Corporation made a strong debut in the stock market on Monday.
It opened for trading at Rs 644 per share on the BSE, which was a 101.25% rise from its issue price of Rs 320. On the National Stock Exchange, the shares opened at Rs 626 a piece, up 96% from the listing price. At noon, IRCTC was trading at Rs 722.50 in the BSE, up 12.1% from its opening price, and at Rs 723.9 on NSE, an increase of 15.64% from the day’s opening.
The Indian Railway Catering and Tourism Corporation hit the equity market with a three-day initial public offering from September 30. It was subscribed 112 times, according to NDTV. Investors bid for more than 225 crore shares of the company, data compiled by the National Stock Exchange showed. As many as 2.02 crore shares had been on offer.
Experts had said earlier this month that the Narendra Modi government, which is facing a crisis of falling tax revenues, is trying to bridge the shortfall through disinvestments, and IRCTC’s IPO launch was a part of this. The IRCTC IPO was the fourth and the biggest public offer from the Indian Railways stable, following the market debuts of Ircon International, Rail Vikas Nigam, and its infrastructure consultancy arm RITES in the past year-and-a-half.
Catering services is IRCTC’s biggest revenue contributor. It is also a major enabler of ticketing sales for Indian Railways. Of the average 1.4 million passengers carried each day by Indian Railways in the first five months of this financial year, 73% booked their tickets through IRCTC’s online portal. It also operates ten water bottling plants, and is setting up six new plants. IRCTC also has a significant footprint in the tourism segment as it offers services such as hotel bookings, cruise, and air tour packages and air ticket bookings.