Reportedly the subscribers to the initial public offering (IPO) of the Indian Railway Catering and Tourism Corporation (IRCTC) are now eagerly waiting for the allotment of shares, which was concluded yesterday, as market experts predict a bumper listing for the PSU (public sector unit) stock. Meanwhile the IRCTC IPO had closed on October 3 and was subscribed nearly 112 times on the back of strong demand across investor categories.
Furthermore the attractive IPO pricing, monopolistic nature of the company’s business and solid subscription figures have fueled expectations that the IRCTC shares may give 50- 75% returns on listing day. Perhaps in fact, market experts believe IRCTC shares can prove to be a good portfolio stock and can be held for four to five years to reap long-term gains.
Sumeet Bagadia, executive director at Choice Broking, told “The IRCTC IPO is a good investment option and one can book around 50% profit on the listing day itself”. He added the shares may list at around Rs 500 and the stock’s performance over the next two quarters would throw light on the future outlook. Furthermore IRCTC shares will be listed on both BSE and NSE on 14 October and the IPO had set the price band cap at Rs 320, with retail investors getting an additional Rs 10 discount apiece.