India, Sept. 30 — State-run Indian Railway Catering and Tourism Corporation Limited (IRCTC) will launch its initial public offering (IPO) on Monday with a price band of Rs 315-320 per share.

IRCTC manages catering service for Indian Railways along with selling tickets online and selling packaged water. (Arijit Sen/HT Photo)

The offer is a part of the government’s divestment programme for the current financial year 2019-20. The government is offloading more than two crore equity shares or 12.6% stake, which will bring down its stake to 87.4%, though this IPO.

The issue will close on October 3.

The price band of Rs 640 crore IRCTC IPO has been fixed at Rs 315-320 per share but retail investors and eligible employees would be offered a discount of Rs 10 per share.

The minimum bid lot is 40 shares. Thus, orders can be placed in the multiple of 40 equity shares. The IPO proceeds will go directly to the government. The shares will get listed on both BSE and NSE.<

IRCTC had filed draft papers with markets regulator Securities and Exchange Board of India (Sebi) for its initial public offer in August this year.</p><p>IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India) are the managers to the offer.

IRCTC is the Indian Railways tourism arm which sells train tickets online, provides catering service to railways and provides packaged drinking water at railway stations and trains.

The IRCTC website is one of the most transacted in the Asia-Pacific region, with a volume of more than 25 million a month.

IRCTC, according to its annual report, sold train tickets worth Rs 28,475 crore online in the year ending March 2018, growing 14% from a year earlier, but its overall income registered a dip.

Apart from IRCTC, three other Indian Railways entities that have launched IPOs are Rail Vikas Nigam Limited (RVNL), Rail India Technical and Economic Service (RITES) and Indian Railway Construction Company Limited (IRCON).

Source from HT media