According to sources state run Indian Railway Catering and Tourism Corp’s (IRCTC) initial public offering (IPO) to raise 6.45 billion rupees ($90.89 million) was subscribed nearly 112 times by the end of the book-running process, stock exchange data showed. Meanwhile investors bid for 2.25 billion shares of the company, compared with 20.2 million shares on offer.

Image result for Investors bid for 2.25 billion shares of IRCTC, as per data from NSE

Furthermore 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. Perhaps Deepak Jasani, head of retail research at HDFC Securities said IRCTC could see better valuation and a jump in EPS from second half of FY20 due to restoration of service charges which were halted after demonetization and the recently announced corporate tax rate-cut.



Moreover the company is authorized by the railway ministry to offer Indian railway tickets online, offer catering service and exclusively manufacture and supply packaged drinking water at railway stations and on trains in India. IRCTC operates in four business segments and also offers e-catering services to passengers via a mobile phone application. Apparently the initial share sale is part of the government’s divestment process to help meet its target to raise 800 billion rupees this fiscal year.


మరింత సమాచారం తెలుసుకోండి: