The (Indian Railway Catering and Tourism Corporation) IRCTC IPO to launch on September 30 and has fixed the price band at Rs 315-320 per share.
IRCTC IPO to launch on September 30, The government plans to raise Rs 635.04 – 645.12 crores from the offering, but the company will not accept any proceeds as it is a presentation for sale issue. Following the IPO, the government’s post in IRCTC will come down by 12.5 per cent.
The IRCTC offer covers of an offer for sale of 2 cr equity shares of face value Rs 10, serving 12.5% of total paid-up equity. The floor price and cap prices are 31.5 times and 32 times the face value of the investment shares, individually. There will also be new employee reservation portion of 1.6 lakh shares, taking the total offer size to 12.6 per cent of complete paid-up equity.
Of the whole shares on offer, 50% will be available for allocation to qualified institutional buyers (QIBs), including 2 lakh investment shares for the common fund share on a proportionate basis. Also, not less than 15% of the offer will be available to non-institutional investor category, and at least 35 per cent will be created available to the retail group.
IRCTC’s stake sale is a part of the Modi government’s full-year divestment plan. The government has planned to raise Rs 90,000 crore by process of CPSE dis-investment in the popular fiscal, up from Rs 85,000 cr in FY19.
IDBI Capital Markets & Securities Limited, Yes Securities (India) Limited and SBI Capital Markets Limited are the books running lead managers to the IRCTC IPO.
IRCTC was organised on September 27, 1999, as a public limited company and was given a mini-Ratna status by the court on May 1, 2008. IRCTC has changed into non-railway catering services like e-catering, executive lounges and budget hotels.