IRCTC listing: Investors more than double money

MUMBAI: Small investors and employees of IRCTC saw their investment more than double in just 10 days as the mini-ratna company, under the railways ministry, witnessed a stellar listing on Monday.
The IRCTC stock — offered at Rs 310 per share to retail investors and its employees, and at Rs 320 to other investors during the book-building process — listed at Rs 644 on the BSE and closed at Rs 729.This valued the company at nearly Rs 11,700 crore (about $1.7 billion).
On the BSE, the stock opened at Rs 644, touched a high at Rs 744 and a low at Rs 625. On the NSE, the stock opened at Rs 626, traded between Rs 743 and Rs 625, and closed at Rs 728. Together on the two bourses, a little over 5 crore shares changed hands on its first day of trading. In the unofficial market, on Sunday evening, the stock was quoted between Rs 525 and Rs 550.

The book-building process for the IPO had closed on October 3 with the issue subscribed 112 times. This made the IRCTC IPO the most successful PSU offer in terms of over-subscription. By divesting a 12.6% stake in IRCTC, or a little over 2 crore shares, the government received Rs 645 crore, which is part of its divestment proceeds for the current fiscal. The budgeted target from all such sell-offs has been set at a record Rs 1.05 lakh crore.
When the book-building process for IRCTC had closed on October 3, it had generated a demand for shares worth nearly Rs 72,000 crore. The total demand for the number of shares was over 225 crore.
IRCTC provides, among a host of services, online railway tickets and on-train catering services. The IPO for IRCTC was managed by IDBI Capital Markets, SBI Capital Markets and Yes Securities.