IRCTC IPO was oversubscribed 112 times and listed at 101% premium to issue price. The document discusses the Indian Railways being unhappy with the underpricing of shares in the IPO, which valued the company at Rs. 5,000 crore but listed over Rs. 11,700 crore. Currently, IRCTC operates in four segments - internet ticketing, catering, packaged drinking water under Rail Neer brand, and travel and tourism. The reduction in corporate tax and new convenience fees will help improve IRCTC's financials going forward.

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IRCTC IPO
REVIEW
Submitted by – PRANAY ALVA

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Introduction
 Indian Railway Catering and Tourism Corporation (IRCTC) is a
subsidiary of the Indian Railways that handles the catering, tourism and
online ticketing operations of the latter, with around 5,50,000 to 6,00,000
bookings everyday. It is the world's busiest and highest of 15 to 16 Lakhs
tickets every day.
 IRCTC held an initial public offering on the National Stock Exchange on 30
September 2019, the IPO got oversubscription of 112 times.[3] The base
price of shares was set between ₹315 and ₹320 (US$4.60) per share for
the IPO.[4] When the listing went live on 14 October 2019, the share price
opened at a ₹625 and ₹646 on NSE and BSE respectively and rose
massively from there.[5] The IPO has reduced Indian Railway's shareholding
in the company to 87.40%.[6]

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Underpricing of shares :
 Indian Railways is miffed over the pricing of IRCTC IPO that saw an
overwhelming response and was listed at 101 per cent premium.
The national transporter lodged a protest about the price at which shares were
offered to investors and has sought better due diligence for future transactions,
given the long pipeline of public offers of state-run companies, reported TOI
 IRCTC shares, which were issued at Rs 320, listed at Rs 644 on the BSE and
closed at Rs 729 on Monday, valuing the company at nearly Rs 11,700 crore. In
terms of over-subscription, the railway PSU's offer was the most successful
issue by a state-run company.
The government, on the other hand, raised Rs 645 crore for a 12.6 per cent
stake that it sold, which valued the company at over Rs 5,000 crore, raising
questions over the valuation undertaken by the merchant bankers. IDBI Capital
Markets, SBI Capital Markets and Yes Securities managed the issue.

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5. z
Current price

6. z
Currently, IRCTC operates in four business
segments, namely, internet ticketing,
catering, packaged drinking water under the
“Rail Neer” brand, and travel and tourism.
 Currently, IRCTC operates in four business segments, namely,
internet ticketing, catering, packaged drinking water under the
“Rail Neer” brand, and travel and tourism.
Particulars (in cr) 2019 2018 2017
Internet Ticketing 234 207 469
Catering 1044 740 398
Packaged Drinking Water (Rail Neer) 176 169 159
Travel and Tourism 444 403 528
Total 1898 1519 1554

7. z Conclusion
 The reduction in corporate tax to 25.17% will help the company as they are
currently paying 34.99%. Moreover, they have started charging a
convenience fee from Sept 2019 to Rs. 15 for Non-AC and 30 for AC which
will help improve the bottom line in FY19.