IRCTC IPO Allotment Status, Review, GMP, Price, Dates, How to Check
If you follow the news, then you must have noticed how it is stormed with IRCTC IPO. That’s a big deal for the company and an investment opportunity for many. Since its inception in 1999, Indian Railway Catering and Tourism Corporation Limited (IRCTC) is state-owned wholly by Indian Railways. So far IRCTC has created a vast product line and deals in tourism, catering, online ticket booking services and packaged drinking water in trains. The Indian government made IRCTC as a Mini-Ratna or Category-I Public Sector Enterprise.
IRCTC’s website is one of the most transacted websites in the Asia-Pacific region. According to the data, around 4.1 million people traveled via Indian Railways by 31st August 2019. To manage its domestic transactions, it also launched its i-Pay payment gateway back in October 2018. These technical capabilities helped it increase efficiency and user experience.
IRCTC also has its hands in non-railway departments as well, for example, budget hotels, e-catering, and executive lounges. Rail Neer is the packaged drinking water that is provided in all the trains in India. It is the sole catering service for the Indian Railways.
Indian Railway Catering And Tourism Corporation IPO Important Dates
- The IPO for the issue was opened on 30 September 2019 and closed on 3 October 2019.
- A total of 20,160,000 equity shares were offered for sale.
- The finalisation of the basis of allotment was done on October 9, 2019.
- Now, the initiation of refunds was planned for October 10, 2019.
- The credit of shares to Demat accounts will start from October 11, 2019.
- In the final step, the IRCTC IPO will get listed for trading on October 14, 2019.
IRCTC IPO Details
- The face value is 10 INR per equity share and the issue price is 315-320 INR per equity share
- Retail and Employee discounts are of a similar value of 10 INR.
- The minimum order quantity was decided at 40 shares.
- It will get listed on BSE and NSE.
Grey Market Price:
The grey market price is the amount of money at which IPO shares are sold in the grey market even before they get to listen to a stock exchange. Based on demand and supply, the grey market price can be negative or positive.
According to brokers, the IRCTC IPO shares are hailing at 160 INR in the grey market. In contrast to its price band of 315-320 INR per share, the grey market price or premium is considered quite strong. This is an indicator of strong listing gains.
IRCTC IPO Allotment Status
Indian investors were all gaga over IRCTC IPO as it was subscribed to 111.91 times on the final day of bidding.
Steps to check
- Go to ipo.alankit.com and enter your PAN or Application Number
- If you want to check the specifics, then use either PAN, Demat Account Number + Client ID (DPID) number or just your bid application number.
- Your portfolio identification number is also your client ID.
- Alankit Assignments is the registrar for the IRCTC IPO and it is responsible for share allotment and refund processing.
After this, the IPO will get listed on BSE and NSE on 14th October 2019.
IRCTC IPO Review
We have discussed a lot in the introduction itself about the IRCTC IPO. But we have not discussed everything. It is known for its high cash flow, return on capital employed and dividend payout.
The company’s total revenues grew at a CAGR of 10.4 percent that is 1,956 crore INR. Moreover, EBITDA or operating profit grew at a CAGR of 9.1 percent to INR 32 Crore. The past two years have seen a CAGR of 9 percent to INR 272 crore.
The company has no debt and cash equivalent of INR 1,140 crore.
There are risks associated if the government allows private players to sell similar product offerings.
But so far, IRCTC is the best IPO in the last two years. Many brokerage houses are recommending IRCTC IPO owing to its monopolistic nature of business and great valuation. According to analysts, the recent corporate tax cut along with comeback of service charges, IRCTC will benefit from it.