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2 minutes read

IRCTC Makes A Stellar IPO Debut; Twitterati Can’t Keep Calm

| Published on October 14, 2019

And the best debut award goes to IRCTC!

Indian Railway Catering and Tourism Corporation (IRCTC) who marked its debut on the Bombay Stock Exchange and National Stock Exchange on Monday saw a huge jump as its share price doubled from the issue price. 

Before markets opened for trading on Monday IRCTC shares settled at Rs. 644 on the Bombay Stock Exchange, while its issue price was Rs. 320 per equity share, gaining 116% whereas, on the National Stock Exchange, IRCTC shares opened at Rs. 626 and hit a day’s high of Rs. 698, a surge of nearly 118%.

As per the reports, IRCTC shares are being quoted at a premium of Rs 240 per share in the grey market, which translates into a gain of over 70 percent from the issues price.

Yes Securities (India), SBI Capital Markets and IDBI Capital Markets were the merchant bankers who handled the issue while Alankit Assignments was the registrar for the share allotment.

With the IPO listing, the government earned nearly Rs 650 crore from the sale of shares and its stake in IRCTC has now reduced to 87.4 percent. 

IRCTC is the fourth railway company to be listed on the bourses after RITES, Rail Vikas Nigam and ICRON which reported a net profit of over Rs 272 crore in the fiscal year 2019 from Rs 220 in the previous year. The company’s revenue grew to Rs 1,867 crore in FY19 from Rs 1,470 crore in FY18.

Here’s how Twitterati reacted to the news-

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