Shares of Indian Railway Catering and Tourism Corp Ltd (IRCTC) more than doubled their value on market debut on Monday. The shares zoomed over 101 per cent in debut trade on Monday against its issue price of Rs 320.
According to the Hindu Businessline, shares opened at Rs 626 before rising as high as ₹698 each, 118.13 per cent higher than their issue price of Rs 320. It listed at Rs 644, reflecting a huge jump of 101.25 per cent as compared to the issue price on the BSE. On the NSE, it skyrocketed 95.62 per cent to Rs 626 in opening trade.
The overwhelming response comes amid slowing growth in Asia’s third-largest economy, which has hit sales of everything from cars to cookies, prompting the government to step in with deep cuts in corporate taxes and a raft of other measures to revive growth.
The company's market valuation stood at Rs 10,972 crore in morning trade. The initial public offering of IRCTC was a huge hit among investors, subscribed 111.91 times earlier this month. The Rs 645-crore IPO was in a price range of Rs 315-320 per share. IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
The retail category was subscribed nearly 15 times while qualified institutional buyers segment got subscribed 109 times and non-institutional investors category 355 times. Since retail investors received shares at a discount of Rs 10 per share, the issue price for them stands at Rs 310 per share. IRCTC operates one of the most transacted websites in the Asia Pacific region with transaction volume averaging at 25 million per month and 7.2 million logins a day. Over 1.4 million passengers travel on a daily basis of which 71.42 per cent book their tickets online.