State-owned Indian Railway Catering and Tourism Corp Ltd (IRCTC) that sells train tickets via its website and also manage its catering services plans to come up with an IPO issue on September 30.
The decision on the IPO launch has been taken in view of the rebound witnessed in the stock markets even since the FM announced cut back on corporate tax rate and other measures to strengthen the ailing economy. After the Friday’s dole-out package, benchmark BSE index has gained 8 percentage or 2,899 points.
In the last few months, IPO approvals for many of the companies lapsed as stock markets were highly volatile due to global slowdown woes, US-China trade war and surge in crude oil prices.
In the IRCTC IPO issue, the government is likely to divest stake worth Rs. 480 crore via an offer for sale (OFS). Price band for the IPO is expected to be declared on Wednesday.
As per a Mint report, the IPO issue of IRCTC will see the government selling up to 20 million shares in the company, which will reduces its holding by almost 12.5%.
Further in accordance with the DRHP filed with the SEBI, the company’s area of businesses include e-ticketing, catering, tourism and travel and packaged drinking water under the ‘Rail Neer’ brand. For the FY 2019, the company’s profit increased by 23.5% to Rs. 272.5 crore while its sales jumped 25% y-o-y to Rs.1,899 crore