Stocks

IRCTC zooms past Rs 700 on stock market debut

Our Bureau Chennai | Updated on October 14, 2019 Published on October 14, 2019

(Left) P S Mishra, Member Traffic Railway Board along with Ashish Kumar Chauhan, MD & CEO, BSE and Mahendra Pratap Mall, CMD, IRCTC striking the gong to list the share IRTC on BSE in Mumbai. Photo: Paul Noronha   -  BusinessLine

Shares of IRCTC made a stellar debut at the stock exchanges on Monday following its highly successful IPO.

While on the NSE, it opened at Rs 626, on the BSE, the beginning was even better at Rs 644. The company fixed the price at Rs 320. The IPO had received a strong response from all categories of investors by subscribing 112 times.

Currently, the stock is trading at Rs 702.50 on the NSE with 2.63 crore shares changing hands. On the BSE, it is trading at Rs 709.

S Ranganathan, Head of Research at LKP Securities, said, "IRCTC's listing today proved yet again that a high quality business with a clear runway for growth which leaves a lot on the table for investors is a sure shot success. IRCTC has today managed to replicate the success of Avenue Supermart in the primary market where we saw bidders showing appetite for the stock even after the stock doubling on Day-1 of listing."

Reuters adds

The overwhelming response comes amid slowing growth in India, which has hit sales of everything from cars to cookies, prompting the government to step in with deep cuts in corporate taxes and a raft of other measures to revive growth.

Also read: Why IRCTC’s initial public offering was a missed opportunity for the government

The IPO was issued to raise ₹645 crore ($91.09 million), with the Indian government retaining a 87.4 per cent stake in the company.

IRCTC has the sole authority to sell railway tickets online, offer catering service and exclusively manufacture and supply packaged drinking water at railway stations and on trains in India. The company operates in four business segments and also offers e-catering services to passengers via a mobile phone application.

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Published on October 14, 2019
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