IRCTC’s Mega IPO Can Launch On September 30; Rs 600 Cr Expected To Be Raised
IRCTC, which is the subsidiary of Indian Railways is all set to launch their mega IPO on September 30th.
Why September 30th? And how much money can IRCTC expect to raise?
Checkout more interesting details about this IPO right here!
IRCTC IPO On September 30th: The Reason
First and foremost, Navratri, one of the most important Hindu festivals will start from September 29th, and this is considered as an auspicious occasion to invest.
Besides, the stock markets are on a positive trend, as Sensex gained 2800 points on a single day when Govt. slashed corporate taxes.
Hence, this phase can be the best best for IRCTC to launch their IPO, and make their debut in the stock market.
Rs 600 Crore Expected To Be Raised
As per reports coming in, IRCTC is expected to raise somewhere between Rs 480 to Rs 600 crore via this Initial Public Offering.
Around 20 million shares of IRCTC will be offloaded by the Govt, which will bring down their stake in the IRCTC as the entity by 12.5%.
This can be termed as one of the biggest disinvestment move by Govt.
IRCTC’s Financial Health: An Overview
IRCTC’s core business can be divided into 4 divisions:
Internet Ticketing: IRCTC operates India’s biggest ecommerce portal, which is used by millions of passengers to book tickets, per day. On an average, more than 2.5 crore tickets are booked via IRCTC app and website, per month.
Catering: Under this, IRCTC offers food and beverages to passengers who are at the railway stations, and in the trains during travel via app-based bookings.
Packaged drinking water under the ‘Rail Neer’ brand: Rail Neer is the official water bottle brand for Indian Railways, and available pan-India.
Travel & Tourism: Under this, IRCTC sells air tickets, hotel rooms and other travel-related services to their users.
As per the draft red herring prospectus filed by IRCTC in August this year, their profit increased to Rs 272.5 crore this fiscal year, which is an increase of 23.5%, compared to last year. Their sale increased by 25% in the same period.
The price band is expected to be announced very soon, for the IRCTC IPO.
Stay tuned, as we will keep updating you with the latest news and views about IRCTC’s mega IPO.