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IRCTC IPO – Review, Allotment Status, Subscription, Price, Date & more

Let’s have a detailed review of the company and analytics of the IRCTC IPO release date, IPO offer price, subscription, IRCTC IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


IRCTC IPO Review & Ratings

IRCTC IPO Ratings & Review
CriteriaRatings
Industry Sentiments8.2/10
Industry Ranking8.o/10
Company Background8.3/10
Company Reputation8.0/10
Competitive Edge8.2/10
Financial Statements8.2/10
Popularity Index8.5/10
Promoters Reputation8.0/10
Retail Appetite8.1/10
Top Brokers Review8.2/10
Overall Ratings8.2/10
Star Ratings★★★★☆

Summary of IRCTC IPO

IRCTC IPO

As a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways, they are 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.

They were incorporated with the objective to upgrade, modernize and professionalize catering and hospitality services, managing hospitality services at railway stations, on trains and other locations and to promote international and domestic tourism in India through public-private participation. It has conferred the status of Mini – Ratna (Category-I Public Sector Enterprise) by the Government of India, on May 1, 2008.

They operate one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 15 to 18 million transactions per month during the three months ended June 30, 2019.

It is also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels, which are in line with their objective to build a “one-stop solution” for their customers.

From FY 2017-2018 to FY 2018-2019, as per the Restated Financial Statements:

The total revenues, excluding interests and dividend income for Fiscal 2017, Fiscal 2018 and Fiscal 2019 were 15,558.42 million, Rs. 15,199.89 million and Rs. 18,993.29 million, respectively.

Its profit after tax (excluding other comprehensive income for Fiscal 2017, Fiscal 2018 and Fiscal 2019 were Rs. 2,290.81 million, Rs. 2,206.19 million and 2,725.95 million respectively.


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IRCTC IPO Date

The opening and the closing date of IPO of IRCTC is [●].


IRCTC IPO Subscription

  • NSE Bid Details
  • BSE Bid Details
Day / DateQIBNIIRIITotal Subscription
1st Day – Aug 5
2nd Day – Aug 6
3rd Day – Aug 7
Shares Offered or Net Issue

The shares subscribed by the public will be updated here.


IRCTC IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


IRCTC IPO Price Band

The price band of a minimum price of ₹ [●] per Equity Share (Floor Price) and the maximum price of ₹ [●] per Equity Share (Cap Price), including any revisions thereof.


IRCTC Size & Share Offering

The Offer is an initial public offering of [●] Equity Shares of the Company through an Offer for Sale by the Selling Shareholder for cash at an Offer Price of ₹ [●] per Equity Share, aggregating to ₹ [●] million.


IRCTC – Company Overview

The Company was incorporated as “Indian Railway Catering and Tourism Corporation Limited” on September 27, 1999, as a public limited company under the Companies Act, 1956 and was granted a certificate of incorporation by the Deputy Registrar of Companies, N.C.T. of Delhi and Haryana.

The Company received its certificate for commencement of business from the Deputy Registrar of Companies, N.C.T. of Delhi and Haryana on December 2, 1999. The CIN of the Company is U74899DL1999GOI101707.

As a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways, they are 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.

They were incorporated with the objective to upgrade, modernize and professionalize catering and hospitality services, managing hospitality services at railway stations, on trains and other locations and to promote international and domestic tourism in India through public-private participation.

They have conferred the status of Mini – Ratna (Category-I Public Sector Enterprise) by the Government of India, on May 1, 2008. It operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 15 to 18 million transactions per month during the three months ended June 30, 2019.

They have also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels, which are in line with their objective to build a “one-stop solution” for their customers.

Currently, It operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism:

IRCTC Internet Ticketing:

They are the only entity authorized by Indian Railways to offer railway tickets online through their website and the mobile application. As of June 30, 2019, more than 1.40 million passengers traveled on Indian Railways on a daily basis, which consisted of approximately 71.42% of Indian Railways’ tickets booked online.

As a result, there are more than 0.80 million tickets booked through www.irctc.co.in and “Rail Connect” on a daily basis. They currently operate one of the most transacted websites in the Asia-Pacific region with a transaction volume of more than 25 million per month and 7.2 million logins per day.

The booking of railway tickets through the internet is now available 24 hours per day, 365 day per year, with the only exception being daily maintenance closure from 23:45 hours to 00:20 hours. The main objective behind the introduction of the internet ticketing was that instead of requiring passengers to be physically present at the Passenger Reservation System (“PRS”), the PRS should be brought to the doorsteps of passengers.

IRCTC Catering:

They provide food catering services to Indian Railway passengers on trains and at stations. On-board catering services are referred to as mobile catering and catering services at stations are referred to as static catering. Pursuant to the catering policy issued by the Ministry of Railways dated February 27, 2017, (“Catering Policy 2017”), It provides catering services for approximately 350 pre-paid and post-paid trains and 530 static units.

It 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. All other catering units, such as refreshments rooms at stations categorized at B or below, AVMs, milk stalls, and trolleys are managed by zonal railways.

They also offer e-catering services to passengers through its mobile application “Food on Track” and its e catering website, www.ecatering.irctc.co.in.

It also operates executive lounges, budget hotels, and retiring rooms for the convenience of the traveling passengers on Indian Railways.

IRCTC Packaged Drinking Water (Rail Neer)

They are the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water at all railway stations and on trains, according to CRISIL. It manufactures and distributes packaged drinking water under the brand “Rail Neer”.

Currently, it operates ten Rail Neer plants located at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Hapur, Ahmedabad and Bhopal, with an installed production capacity of approximately 1.09 million litres per day, which caters to approximately 45% of the current demand of packaged drinking water at railway premises and in trains.

To increase its presence in the packaged drinking water market at railway stations, and to meet the growing demand, they are setting up new Rail Neer plants at Sankrail, Jagi Road, Nagpur, Bhusawal, Jabalpur, and Una and further plants at Vijaywada Ranchi, Vishakhapatnam, and Bhubneshwar.

They have also installed water vending machines (“WVMs”) at railway stations to provide purified, chilled and portable drinking water to railway passengers at an affordable price.

IRCTC Travel and Tourism:

They have been mandated by Indian Railways to provide tourism and travel-related services. As of the date of this Draft Red Herring Prospectus, it has footprints in across all major tourism segments such as hotel bookings, rail, land, cruise and air tour packages and air ticket bookings, and are known as one of India’s leading travel and tourism companies catering to the needs of diverse tourist segments. With the strength of being a CPSE under the administrative control of the Ministry of Railways, it is specialized in rail tourism.

They have an established track record of delivering strong annual returns to shareholders and its return on equity has exceeded 23% for each fiscal year since Fiscal 2017.

It has been a profitable and debt-free company since its incorporation. They have received several awards and recognitions including State Awards in the category of “Excellence in Domestic Tour Operations” in 2017, Dun & Bradstreet’s PSU Awards in 2017, India Power Brand 2016 Award, Indian e-Retail Awards 2015, Best Use of Mobile App 2015, Most Trusted Brand in Railways Service Provider India Pride Awards 2014-15, World Travel Awards 2015, Website of the Year India Award 2015.

The packaged drinking water, Rail Neer, was ranked as a top performer by “Consumer Voice” Magazine in 2017. They have been honored in the Fortune India Next 500 list for the year 2016 – 2017.

Business strategies of IRCTC IPO:

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

IRCTC – Financial Statements

A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & Millions)
31-Mar-1931-Mar-1831-Mar-17
Total Assets25,837.8023,191.0618,264.54
Total Revenue19,566.6015,695.6016,028.50
Total Expense15,266.9712,239.2712,477.82
Profit After Tax2,725.952,206.192,290.81

Earnings per Equity Share (in Millions)

31-Dec-1931-Dec-1831-Mar-17
Basic EPS in Rs17.0413.7914.32
Diluted EPS in Rs.17.0413.7914.32

From the above statements, one could find that IRCTC may perform well.


IRCTC IPO – Promoter

The Promoter is the President of India acting through the Ministry of Railways, Government of India. IRCTC is owned by the Ministry of Railways.

There are many public-sector banks that have invested in IRCTC. They have promoted the company it means that has improved the quality of service rendered by the company.

Interest of Promoters

The interest of Promoters in the promotion of the company

The promoters of the company have promoted the company and they have shown interest in their shareholding of the company in the form of equity shares.

Interest of promoters in the property of the company

The promoter is not interested in the property of the company, they are only the shareholders of the company who have invested in the firm.

Interest of promoters in the intellectual property of the company

The promoter does not have any interest in the intellectual property of the company.


IRCTC IPO Offer Details or Issue Details

 Particulars No. Of Equity Shares
Offer[●] Equity Shares aggregating to ₹ [●] million
Of which:
Employee Reservation PortionUp to [●] Equity Shares aggregating to ₹ [●] million
Net Offer20,000,000 Equity Shares aggregating to ₹ [●] million
Of which:
A. QIB PortionNot more than 10,000,000 Equity Shares
Of which:
Anchor Investor PortionUp to 6,000,000 Equity Shares
Net QIB Portion (assuming Anchor Investor Portion is fully subscribed)4,000,000 Equity Shares
Of which:
Mutual Fund Portion200,000 Equity Shares
Balance for all QIBs including Mutual Funds3,800,000 Equity Shares
B. Non-Institutional PortionNot less than 3,000,000 Equity Shares
C. Retail PortionNot less than 7,000,000 Equity Shares
Pre and post – Offer Equity Shares
Equity Shares outstanding prior to the Offer160,000,000 Equity Shares
Equity Shares outstanding after the Offer160,000,000 Equity Shares

IRCTC IPO Objects of The Offer

These are the IPO objects of The Offer of the company

  • To carry out the disinvestment of [●] Equity Shares by the Selling Shareholder constituting [●]% of its Company’s paid-up Equity Share capital the Company; and
  • And To achieve the benefits of listing the Equity Shares on the Stock Exchange. The Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

IRCTC IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

Some of the qualitative factors and their strengths which form the basis for the Offer Price are:

  • Authorized by the Ministry of Railways to offer tickets of Indian Railways online;
  • An Authorised 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 control; and
  • Qualified and experienced employees and management team.

The relevant quantitative factors are:

Basic EPS
in Rs.
Diluted EPS in Rs.RONW (%)NAV in Rs.
31-Mar-1917.0417.0426.1465.18
31-Mar-1813.7913.7923.11
31-Mar-1714.3214.3229.12
  • Industry P/E Ratio:

Price to Earning Ratio (P/E) in relation to the Offer Price of ₹ [●] per Equity Share

ParticularsP/E
Highest
Lowest
Average
  • Competitive Peers:

As on the date of this Draft Red Herring Prospectus, there are no listed companies in India that are engaged in the same line of business as its Company and comparable to its scale of operations, hence comparison with industry peers is not applicable.


IRCTC IPO Lead Managers

Lead Managers
IDBI Capital Markets & Securities Limited

SBI Capital Markets Limited

YES Securities (India) Limited

IRCTC IPO Registrar to offer

Registrar to the Offer
Alankit Assignments Limited
205 – 208, Anarkali Complex
Jhandewalan Extension
New Delhi 110 055, Delhi, India
Tel: 011 42541954/933/ 022 4348 1293
E-mail: /

Investor grievance E-mail:

Website: www.alankit.com
Contact Person: Kamal Arora/ Abhijit
Deb/ Virender Sharma
SEBI Registration No.: INR000002532

Other Details:

  • STATUTORY AUDITOR – M/s. Serva Associates, Chartered Accountants.
  • LEGAL ADVISOR TO THE ISSUE – M/s. Crawford Bayley & Co. & Hogan Lovells International LLP
  • BANKER TO THE COMPANY – Axis Bank Limited, HDFC Bank Limited, ICICI Bank Limited, IDBI Bank Limited, IDFC First Bank Limited, Indusind Bank Limited, Oriental Bank of Commerce, State Bank of India, Yes Bank Limited, Union Bank of India, Indian Overseas Bank, Syndicate Bank, AU Small Finance Bank Limited, Karur Vysya Bank Limited.

IRCTC IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking6.5/106.6/106.6/106.4/106.4/10
Sharekhan6.7/106.4/107.1/106.1/106.2/10
Kotak Securities7.1/106.7/106.7/106.4/106.3/10
ICICI Direct6.6/106.3/107.1/106.5/106.5/10
IIFL6.4/106.7/106.8/106.4/106.7/10
Edelweiss6.7/106.4/106.4/106.3/107.1/10
Zerodha6.5/107.1/106.7/106.4/106.5/10
5Paisa6.7/106.4/106.3/106.7/106.5/10
Karvy6.8/106.3/106.7/106.4/106.0/10
Motilal Oswal6.6/106.4/106.6/106.6/106.4/10

The ratings would be updated once the financials and the other details of the IPO are released.


IRCTC IPO Grey Market Premium

The IRCTC IPO Grey Market Premium price is Rs [], the Kostak rate is Rs [] and the Subject to Sauda is X. 


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IRCTC IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

News 2 – RHP Download


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