IRCTC files DRHP with SEBI

Indian Railway Catering and Tourism Corporation (IRCTC), the Railways’ tourism and catering arm, has filed initial papers with the market regulator for its proposed Initial Public Offering (IPO).

While the company did not disclose the amount it intends to raise through the IPO, market sources pegged it at about Rs 500-600 crore.

IRCTC filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Thursday.

The issue comprises 2 crore equity shares through an Offer For Sale (OFS) by the President of India, acting through the Ministry of Railways, the filing showed.

Up to 50 per cent of the offer will be allocated to qualified institutional buyers (QIBs), up to 15 per cent to non-institutional bidders and 35 per cent to retail individual bidders.

IDBI Capital Markets & Securities Ltd, SBI Capital Markets Ltd and YES Securities (India) Ltd are the book-running lead managers to the offer.

IRCTC, which was conferred Mini Ratna status (Category-I Public Sector Enterprise) in 2008, offers catering services to the Railways, online railway ticket bookings and packaged drinking water at railway stations and trains.

The Public Sector Enterprise had also diversified into other businesses such as e-catering, executive lounges and budget hotels.

Over 1.4 million passengers travel on a daily basis, of which 71.42 per cent book their tickets online. Between FY14-19, online bookings have grown at 12.5 per cent per annum.

Earlier in April, reports quoting unnamed officials said the Government was looking to raise about Rs 1,500 crore through the IPOs of two railway companies -- IRCTC and Indian Railway Finance Corporation (IRFC) - by September.

While the IRCTC IPO could fetch about Rs 500 crore, the public offering of IRFC could garner close to Rs 1,000 crore to the exchequer. In April, the Government had raised about Rs 480 crore by selling a 12.12 per cent stake in Rail Vikas Nigam Ltd (RVNL).

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