IRCTC IPO, subscribed 112 times, is the most successful in 20 months
Led by demand from institutions and rich investors, the IPO got bids for 225.6 crore shares.
Led by demand from institutions and rich investors, the IPO got bids for 225.6 crore shares compared to the total issue size of 2.02 crore shares, data on the NSE showed. This makes it the best subscribed IPO since Apollo Micro Systems which was subscribed 250.7 times and Amber Enterprises India which was subscribed 115.3 times. Both the IPOs were launched in January 2018.
The portion reserved for QIBs got subscribed 108.8 times, while HNI portion got subscribed 354.5 times. Retail and employees portion got subscribed 14.6 times and 5.8 times, respectively. Both retail investors and employees will receive shares at a Rs 10 discount to the final offer price.
The company had set a price band of Rs 315-Rs 320 for the IPO.
IDBI Capital Markets & Securities, SBI Capital Markets and YES Securities (India) were the book running lead managers to the offer which constitutes 12.6% of the total paid-up equity.
“IRCTC IPO has evoked tremendous response from all the categories of investors, with the issue being subscribed more than 111 times. The issue, which divested 12.6% of GoI’s stake in the CPSE is expected to generate revenue of Rs 645 crore. It is the 2nd CPSE to be listed this fisc,” Department of Investment and Public Asset Management (Dipam) tweeted on Thursday evening.
“The grey market premium of around Rs 200 captures the value of the business. Further gains will depend on how the company ramps up its e-ticket business, how its private train project ramps up and when the new water bottling plants come up,” said Geetanjali Kedia, senior research analyst at SPTulsian.com.
“The listing should be around Rs 520- Rs 525,” said Kedia.
Brokerages such as IndiaNivesh Securities, ICICIdirect, BP Equities, Angel Broking, Phillip Capital and Anand Rathi had given a subscribe rating to the issue ahead of the IPO. IRCTC IPO has been garnering interest due to attractive pricing and monopolistic nature of the company’s business.
“IRCTC is the only entity authorised by the Indian Railways to provide services. This gives it advantages in increasing market share in e-ticketing, packaged drinking water, and in e-catering,” said Phillip Capital in a pre-IPO note.