New Delhi: IRCTC IPO opens for subscription today and the issue is expected to see a strong demand amid the recent rebound in equity market sentiment after the corporate tax cut. Many analysts have also recommended ‘subscribe’ to IRCTC IPO, citing valuation comfort.
The issue closes for subscription on 3 October. Through this IPO in state-run IRCTC, the government is offloading 2 crore equity shares or 12.6 per cent stake, which will bring down its stake to 87.4 per cent.
The price band of Rs 640 crore IRCTC IPO has been fixed at Rs 315-320 per share but retail investors and eligible employees would be offered a discount of Rs 10 per share. IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway ticketing service and packaged drinking water at railway stations and trains in India.
Price band per share is Rs 315-320. Retail investors and eligible employees get a discount of Rs 10 per share. So the effective price band of IRCTC IPO for retail and eligible employees is Rs 305-310 per share. The tentative date of allotment of IRCTC shares is 9 October. IRCTC shares will get listed on both BSE and NSE and tentative date of is 14 October.
The lot size or minimum order quantity is 40. So at the effective price band of Rs 305-310 per share for retail investors, they have to shell out Rs 12,200-12,400 per one lot. 35 per cent of the IRCTC IPO has been allocated for the retail portion. Retail investors are allowed to bid up to Rs 2 lakh shares. The maximum number of shares retail investors can bid is 640 or 16 lots at lower price band (Rs 1,95,200) as well as 640 or 16 lots at upper price band (Rs1,95,200-1,98,400).