Indian Railway Catering and Tourism Corp LTD (IRCTC) is set to launch its first initial public offering (IPO) on the 30th of September 2019.
Following the Finance Minister, Nirmala Sitharaman’s announcement on corporate tax cuts, IRTCT plans to sell its share in the market. The Sensex benchmark has increased by 8% since Friday. Many companies experienced their IPOs failing in the last few months due to the fraught condition of the stock market marked by the slow down of the economy, rising crude oil prices and the global trade war.
According to sources, IRCTC is planning to sell-off shares worth Rs 480 crores. The price band of the IPO will be mostly announced by Wednesday. The stake sale will result in government losing around 10 to 12% of its stake in IRCTC.
According to its draft red herring prospectus filed with the regulators in August, IRCTC had a rise in its profit. With an increased sale of 25%, the profits grew from 23.5% to ₹272.5 crores in the financial year 2019.
IRCTC receives comparatively highest traffic on its website from the Asia-pacific region. Around 800,000 tickets are booked daily through its website and Rail connect.