ADVERTISEMENT

IRCTC lists at Rs 651 on NSE compared to Rs 320 issue price; reports 103% gain
I

IRCTC shares listed at Rs 644 on the Bombay Stock Exchange and Rs 651 on the National Stock Exchange today, seeing a subscription of nearly 112 times on the last day of the initial public offering (IPO).

IRCTC shares have listed with a gain of over 103% compared to its issue price of Rs 320 per share. According to BT, Indian Railway Catering and Tourism Corporation shares listed at Rs 644 on the Bombay Stock Exchange and Rs 651 on the National Stock Exchange today, seeing a subscription of nearly 112 times on the last day of the initial public offering (IPO). The IPO was open for subscription between 30th September and 4th October.

At 10 in the morning, the stock was trading at Rs 652.15 on BSE, up by 103% from its issue price. In the previous two fiscal years, IRCTC has clocked a 10.3% annual growth, with revenues soaring to Rs 1,868 crore in the FY’19. However, its profits after tax margins fell from 14.3% in FY’17 to 13.9% in FY’19. 

Over the last two years, IRCTC has high return ratios with RoCE (return on capital employed) and RoE (return on equity) of 25% with dividend payouts of more than 40% of net profits, higher than the regulatory norm of 30%. Analysts mentioned healthy cash balances provide comfort against business uncertainties.

 

IRCTC- internet ticketing, catering, packaged drinking water and more

IRCTC is a government-run firm and only organization authorized by Indian Railways to provide catering services to railways, packaged drinking water at railway stations and trains, and online railway tickets in India.

Presently, IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water, and travel & tourism. The firm has also expanded into other businesses, including services like e-catering, executive lounges, and budget hotels. Catering services, internet ticketing, packaged drinking water, and travel & tourism contribute 55%, 12%, 9%, and 24% respectively to the FY’19 revenues.

IRCTC has one of the largest websites that observe 7 million logins each day. The firm has reinstated the convenience fee in the range of Rs 10-30 per booking on its mobile and web platforms. Indian Railway Catering and Tourism Corporation handles 2.5 crore transactions per month and has seen an incremental revenue potential in the range of Rs 300-900 crore. According to the management, the majority of revenues are likely to flow to the bottom-line.

+ posts

A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

Note: If you buy something via a link on this page, we might earn a small commission on it.

Saumya Uniyal
Saumya Uniyal
A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Leave A Reply

Please enter your comment!
Please enter your name here

related stories

The Indin government had warned Amazon and Flipkart to comply with the new rules and specify the product's country of origin, Amazon was also penalized.

The ‘Country of Origin Rule’ and Why it Matters to India?

0
India's government has fined ecommerce giant Amazon 25,000 INR for not displaying mandatory information, including the country of origin for its products (1). Last...
Stripe, one of the world's leading digital payment players, will soon penetrate Southeast Asia and India to expand its overseas activities.

Is Stripe’s entry to e-commerce Asia a bet on risk or return?

0
The entry of global players such as PayPal, Payoneer, and now Stripe in the Asia Pacific region validates the increasing market opportunity and evolving...
Paytm is also on its path to become a super app and give its users an all-in-one experience by offering a bundle of services.

Paytm Paving into a Super App, Expand its Service Offering

0
Paytm has pulled another conquest when the marketing reckon that it would take a kickback. Earlier, when there was buzz that Paytm is venturing...
The recent discussion now involves a massive data leak that put the information of students, teachers, and much more in crisis for WhiteHatJr.

WhiteHatJr Data Leak Controversy: Unfolded

0
Not too long ago, a live online coding platform for children, White Hat Jr., scripted a dream escape for itself. Byju's, the poster boy...
The story of Ashok Varma could be deemed as the most praiseworthy and controversial story of an ideal mind whose focus was to shift the market.

Meticulous and determined till the end: the story of Ashok Varma

0
Our world has been most captivated by the ideas of extreme players who took the world by storm, some who pulled the stock market...
It has been understood that Google, has been in talks or is in a state of mind to acquire Sharechat, the Indian social media platform.

Is Google taking the right measures to acquire Sharechat?

0
Sharechat has been India's go-to to engage in a short video and take a peek or have fun after the ban of the international...
Pradeep Poonia, a staunch critic of the edtech firm, has alleged its malpractices and misleading advertisements via social media posts.

WhiteHat Jr Vs. Pradeep Poonia: The Rage Against Silencing

0
Karaj Bajaj, an Indian entrepreneur and founder of the coding platform WhiteHat Jr (1), has filed a defamation suit against Pradeep Poonia, an engineer...
A deal was made with the Reliance group to acquire a stake and a near buyout in the future. Amazon approached Indian-based SEBI to counter-attack the offer.

Future looking bleak for Amazon as CCI decides fate of buyout

0
Read the previous two stories: Battle of Business Rivalry: Amazon Vs. Reliance The Legal Battle Continues Over Indian Retail Industry Deal   The Future Group has...
ADVERTISEMENT