IRCTC shares expected to list today at Rs 525-550

Mumbai: The listing of IRCTC shares , which is slotted for Monday, is expected to be as strong as the IPO book building process. In the unofficial market for shares, IRCTC stocks are being quoted between Rs 525 and Rs 550, which is a premium of about 72% compared to its offer price of Rs 320. For retail investors and the company’s employees, who got the shares at Rs 310, a discount of Rs 10, the gain in just over a week works out to nearly 80%.

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 oversubscription. By divesting 12.6% stake in IRCTC, the government was eyeing to mop up about Rs 645 crore.

According to market players and social media updates, the shares of IRCTC could list in the range of Rs 525-550. “The current GMP is about Rs 225 apiece,” said a trader. GMP is the acronym for grey market premium, which is quoted on a per-share basis over the IPO price. The operators of this unofficial market have got a substantial reach in Gujarat and Maharashtra. These wagers are launched in the build up to almost every IPO and are settled as soon as the shares are listed on the official exchanges.

When the book building process closed, it generated a demand for shares worth nearly Rs 72,000 crore. The retail portion was subscribed 14.7 times while the employees’ portion 5.8 times. The institutional part subscribed 109 times and the high net worth investors portion 355 times. Against the government’s target to sell a little over 2 crore IRCTC shares, at a price band of Rs 315-320 apiece, the total demand was for 226 crore shares.

IRCTC, a mini-ratna company, provides services like online railway tickets and on-train catering services.

The IPO for IRCTC, which is under the railways ministry, was managed by

IDBI Capital Markets

,

SBI Capital Markets

and

Yes Securities

.