IRCTC Lists 129% higher than IPO price.

Equity Right, IRCTC



Established in September 1999, The Indian Railway for Catering and Tourism Corporation (IRCTC) has been there for passengers wishing to travel by the trains. IRCTC has grown substantially with more than 590 employees across the country. IRCTC enjoys a monopoly for online ticketing as well as food services in Trains. With a tagline ‘Lifeline of the Nation’ IRCTC has provided passengers with options of food varieties and clean water. IRCTC has Listed 129% higher than IPO price. It has arrived at Dalal Street in style.

IRCTC goes public

IRCTC with its winning run has launched its Initial Public Offer (IPO) starting September 30 and which ended October 3rd. The railway subsidiary has launched the much-anticipated IPO and meet governments disinvestment target. The IPO price band was projected at ₹315 – ₹320 per share. The minimum order for each subscriber was set at 40 Shares. IRCTC employees and retail investors are getting a discount of ₹10.

However, being the only player in train catering services the IPO was oversubscribed  raising ₹72,000 crores. Revenue earned was ₹1956.66 crores in FY19. Operating profit of IRCTC grew to ₹429.96 crores in FY19. This shows a 24. 4% increase from ₹345.63 crores in FY18. The introduction of IPO will also reduce the Indian railway’s holding in IRCTC to 87.40%.


The opening of the IPO was expected to bumper owing to the high demand it received during the IPO launching period. The company is listed in both NSE and BSE.

IRCTC opened  in NSE at ₹626 per share reaching an intraday high of ₹704.50. More than 1.59 crores share were traded in NSE. IRCTC was trading on average ₹ 673.20 against its opening price.


The IRCTC stock closed at Rs 728.60 and Rs 727.75 on BSE and NSE. This comes higher than their opening price of rs 320 on both the exchange. At closing bells, the stock of IRCTC hike by 13% on BSE against its listing price of Rs 644. On BSE the hike increase to 17% against its listing price of Rs 626.


The railway subsidiary is set to get additional ₹ 300 crores for its FY20. Shares were positive in the market, as it has a strong cash reserve of more than ₹1150 crore and a zero debt in its balance sheet. The debut backed by India’s three top banks, namely SBI capital markets, Yes Securities and IDBI capital markets. With its bumper debut in the stock market, IRCTC will get a boost in its future operation and also by diversifying in other businesses.


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