(NDTV)
Indian Railway Catering and Tourism Corporation (IRCTC) saw huge demand for its shares in the initial public offering (IPO) which closed on Thursday. IRCTC’s IPO to raise Rs. 645 crore was subscribed close to 112 times by the end of the bidding process on Thursday, data compiled by the National Stock Exchange showed.
Investors bid for over 225 crore shares of the company, compared with 2.02 crore shares on the offer, according to data from the National Stock Exchange, as of 6:00 pm on Thursday. As per the data on NSE, IRCTC received bids worth Rs. 72,000 crore at the upper price band.
IRCTC is authorised by the railway ministry to sell Indian railway tickets online, offer catering service and manufacture and supply packaged drinking water at railway stations and on trains across India.
IRCTC operates in four business segments and also offers e-catering services to passengers via its mobile phone application. “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,” Deepak Jasani, head of retail research at HDFC Securities told.
