Rs 645 crore IRCTC IPO to open on September 30, price band fixed at Rs 315-320 per share

Mangalore Today News Network

New Delhi, Sep 25, 2019: The Initial Public Offering (IPO) of state-owned Indian Railway Catering and Tourism Corporation (IRCTC) will open for subscription on September 30 and close on October 3.The IRCTC has set the price band for its initial public offering at Rs 315-320 per share. IRCTC will not receive any proceeds from the offer as it is an offer for sale issue and all proceeds will go to the selling shareholder, Zee reported.

 

Talking to Zee Media, IRCTC chairman and Managing Director M P Mall said that the IPO comprises of an offer for sale of 2 crore shares, which represents 12.50 percent of total paid-up equity by the Ministry of Railways. An additional employee reservation portion of 1.6 lakh shares is also there which makes the total offer size to 12.6 percent of total paid-up equity. The government is planning to raise as much as Rs 645.12 crore at the aforementioned price band. The minimum bid lot is 40 equity shares and in multiples of 40 equity shares thereafter.

According to IRCTC chief, the launch of private train has got good response from the passengers and it is expected that the operations of more trains will get privatised in future. Mall noted that ticketing revenue has decreased after the removal of service charge in 2016 but the service charge has been reintorduced from September 1 and this will definitely add to the revenue. The IRCTC chairman said that new services will be launched on the platforms of IRCTC.