IRCTC IPO

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(i) IRCTC ( Miniratna PSU ) is a wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. They are the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.

(ii) IRCTC was formed with an objective to upgrade, modernize and professionalize catering and hospitality services, managing hospitality services at railway stations, on trains and other locations and to promote international and domestic tourism in India through public-private participation

(iii) Currently, IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.

(iv) Revenue contribution from different verticals.

Particulars (in cr) 2019 2018 2017
Internet Ticketing 234 207 469
Catering 1044 740 398
Packaged Drinking Water (Rail Neer) 176 169 159
Travel and Tourism 444 403 528
Total 1898 1519 1554

(v) Under the Catering Policy 2017, IRCTC benefits from a monopoly position in many of the services they provide to the customers. In particular, they are the exclusive provider of online railway ticketing, catering services and packaged drinking water( Rail Neer ) for trains and stations.

IRCTC IPO Stock Quote & Charts

927.30

+2.26%

  • Open: 919.00
  • High - Low: 940.00 - 902.40
  • Previous Close: 906.85
  • Total Traded Volume: 313578
  • Updated On: 15-Nov-2019

Objects of the IRCTC IPO:

The objects of the Offer are: (i) to carry out the disinvestment of 20,160,000 Equity Shares by the Selling shareholder constituting 12.60% of  paid-up Equity Share capital IRCTC (ii) To achieve the benefits of listing the Equity Shares on the Stock Exchanges. The company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

IRCTC IPO Details:

Open Date: Sep 30 2019
Close Date: Oct 03 2019
Total Shares: 20160000
Face Value: ₹ 10 Per Equity Share
Issue Type: book building
Issue Size: 645 Cr.
Lot Size: 40 Shares
Issue Price: ₹ 315-320 Per Equity Share
Retail Discount: 10
Listing At: NSE,BSE
Listing Date: Oct 14 2019

Promoters And Management:

The govt. of India is the promoter of IRCTC.

Financials of IRCTC IPO:

(fig. in cr)
Year Revenue EBITDA OPM PAT NPM Shares EPS
2017 1602 380 23.7% 229 11.4% 4.000 14.3
2018 1569 372 23.7% 220 10.9% 4.000 13.8
2019 1956 461 23.6% 272 13.5% 16.000 17.0
IZ View 1. The company is steadily growing in the last 3 years in term of Revenue and PAT. 2. The company has very good EBITDA margins of above 20%. 3. The company has an asset-light model and it is a debt-free company. 4.  The Mcap at higher band of Issue price is ~ 5100 Cr. The Mcap/Sales multiple is 2.61x.( reasonable). 5.  The P/E multiple at higher band of issue is ~18x.( reasonable ). 6. The company has excellent RONW of 26% based on FY19 financials.

Comparison With Peers:

As on the date of this Red Herring Prospectus, there are no listed companies in India which are engaged in the same line of business as our Company and comparable to our scale of operations, hence comparison with industry peers are not applicable.

Recommendation on IRCTC IPO:

Review and Recommendation of InvestorZone is:  6/10 1.  The IRCTC has a monopoly business as it is the only authorized dealer for catering, ticket booking, and water bottles supply in Indian railways to the passengers. 2. They are one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 2.5 to 2.8 cr transactions per month. 3. The IRCTC is regularly giving very good dividends. Final Dividend during 2018-19:- INR 22.20 per share, F.Y 2017-18 INR 11.80 per share and F.Y 2016-17 INR 18.86 per share, including Interim Dividend paid during the year F.Y 2018-19 INR 3.75 per share and F.Y 2016-17 INR 9.38 per share. 4. The Valuation at P/E multiple of 18x looks reasonable. 5. The reduction in corporate tax to 25.17% will help the company as they are currently paying 34.99%. Moreover, they have started charging a convenience fee from Sept 2019 to Rs. 15 for Non-AC and 30 for AC which will help improve the bottom line in FY19.

Registrar of IRCTC IPO:

  1. Alankit Assignments Limited

Bid Details of IRCTC IPO as on
03-Oct-2019 23:15:02 IST

No.of shares offered No. of shares bid No. of total times
10,000,000 1,087,887,320 108.79
3,000,000 1,063,568,360 354.52
7,000,000 104,576,320 14.94
160,000 930,560 5.82
- - -
20,160,000 2,256,962,560 111.95
No.of shares offered No. of shares bid No. of total times
10,000,000 559,536,320 55.95
3,000,000 658,974,120 219.66
7,000,000 74,002,640 10.57
160,000 637,320 3.98
- - -
20,160,000 1,293,150,400 64.14
No.of shares offered No. of shares bid No. of total times
10,000,000 528,351,000 52.84
3,000,000 404,594,240 134.86
7,000,000 30,573,680 4.37
160,000 293,240 1.83
- - -
20,160,000 963,812,160 47.81

Total Number of Applications in Retail Category: 14,64,763

Application-wise Subscription in Retail Category: 8.37X

Discussion on IRCTC IPO:

    FRIENDS PLEASE PLEASE SUGGEST ME A GOOD STOCK BROKING COMPANY…KARVY IS THE WORST.
    NOT GIVING PAYOUT..PLEASE

      If you want to open dmat account through discount broker then you should go SAS ONLINE broker . Brokerage plan is 9rs per trade . Payout issued in next working day.

    Is it advisable to buy HDFC bank or Ujjivan shares at this time to apply in the shareholders quota of upcoming ipod of their subsidiaries?

    @market wizard any idea about the upcoming IPO of Aramco oils Saudi?????
    What could be procedure for the subscription if someone is interested init same as our normal IPOs or would there be any change due to it being a forgien company

      It will list in Saudi Arabia. So we cant participate.

      Just for knowledge if someone can explain. Is it a rule that as a Indian we can apply for only companies listed on Indian market????
      If not which all global markets can we participate in ???

      To apply for an IPO, you need a trading/demat account. Do you have an account on the Saudi exchange? You can participate on any exchange in the world if your broker allows that. Just as a foreigner can invest in India, you can invest worldwide. Ask your broker if they support other markets in the world. Many international brokerages allow you to invest in all major markets of the world. But Saudi market would be difficult to find as it’s not very popular and was closed to foreigners until 5 years back.

    💡 *IPOs likely in the month of Nov 19*

    ✅ CSB Bank Ltd.(Formerly known as The Catholic Syrian Bank Ltd.) – Rs. *500* Crs

    ✅ Ujjivan Small Finance Bank Ltd. – Rs. *1000* Crs

    Congratulations to all those who were alloted shares, you have doubled up your money

    by looking at the volumes, the IRCTC may hit UC at the E.O.D

    Few days back i wasn’t aware about the IRCTC IPO. Thanks to Investorzone, i got the fair idea about tbr ipo and the detailed research through email notifications from Investorzone. I would like to express my kind gratitude and thankfulness to Investorzone and Market Wizard. You guys rock, cheers.

    Have anyone got the blocked amount released, as my balance still shows blocked under lein section. I have not been allotted any shares.

      Please contact your bank tomorrow. The lien should have been removed by till now.

        Even same here. Not sure if its due to the bank holiday on 2nd saturday but still amount is in lien only.

        Will the bank or the issue manager of the ipo help us with this?

    ⏳ *MOST AWAITED IPO*

    💡 *HDB IPO*(HDFC GROUP)

    દિવાળી પછી આ IPO આવવાનો છે ….આ IPO ના ફોર્મ આવવાનાં નથી,

    આમાં બધાજ ઇન્વેસ્ટર્સ ને ફરજિયાત નેટ બેન્કિંગ અથવા તો UPI ID થી IPO ભરવો પડશે.

    *IPO સારો છે*

    જેથી જે લોકે ને UPI ID બનાવવા નો બાકી હોય તે લોકો ID બનાવી લેવો અથવા તો બેંક માં ATM કાર્ડ લઈ લેવું.

    GOLDEN TIP FOR THOSE WHO DIDN’T GOT ALLOTMENT

    IF YOU HAVEN’T GOT ALLOTMENT OF IRCTC IPO LIKE ME, THEN ALSO YOU CAN EARN FROM IT. HOW??

    BUY IT UPON LISTING I.E. @LISTING PRICE AND THEN SELL IT FOR PROFITS LATER

    🚆 *IRCTC IPO*

    Market 🧘🏻‍♂Pundits are giving very aggressive targets:

    🧨Listing Day ==> 550-600

    🧨By Diwali ==> 700-750

    🧨By Year End ==> 850-900

    Was just wondering is it a good idea to buy IRCTC on the day of listing for long term investment.

    Hi I got 1 lot, but my transaction gets fail due internal exception at server/cbs/remitter side, what to do today is last day, if money is not remitted by today itself do I loose want I gain, please suggest

    Had applied for 4 lots but got 0 🙁

    my question is regarding the amount blocked. Maccount balance is still not updated and the lien balance still shows the amount blocked for the application. When will the amount be released?

    I thought it would be released yesterday itself once the allottment is out. Can anyone please guide me?

    Congratulations to the ones who got the allotments. Better luck to the ones who didn’t got. Applied for 2 got 0

    *Listing update

    Indian Railway Catering and Tourism (IRCTC)*

    *BSE CODE:- 542830*
    *NSE CODE:- IRCTC*
    *ISIN NO:- INE335Y01012*

    Monday

    Ready for blockbuster listing on Monday. The expected listing above 500.

        It is a long term stock. My advice would be to sell half and keep the other half for the long term.

    Suppose I have 1 dmat AC and 2 bank accounts so, can I apply from both of the bank ACs for same ipo?

    For IPO allotment, does stock agency (Kotak, Zerodha etc.) matters? Because one of my friends got 40 of 640 from Kotak, but for me 0 of 600 from Zerodha.

    I tried to check the status on alankit link but it is showing “no record found” please advise if allotment out or no ?

      0 /3
      ek app mein hold lg gya tha , means amount block ho gyi thi…but no record found aa rha h

      Applied for 1 lot in 1 Application and 3 lot in other but alloted 0 ,so hard to get allotment in IPO these days.

    Applied for 600 shares but allotment 0, hard luck . I congratulate whoever gets allotment.

    *IRCTC IPO Basis of allotment update*:

    *Retail Investor will get 40 Equity share in 13:96 ratio.*

    *Final HNI Subscription: 350.70*

    Allotment status will be available on RTA website post 1.00 pm today http://ipo.alankit.com/

    Tentative Listing Date: *14-Oct-2019*

    *Team Edelweisspartners*

      The details in this page say that BSE Retail category was oversubscribed by around 10.57 times and NSE retail category was oversubscribed by around 4.37 times. Does it mean one has more probability of getting at least a lot if one has applied in NSE?
      Adding your information (13:96) and the above logic together, it seems that the ratio for NSE will be 19:96 and for BSE, it will be 8:96. Am I missing anything?

    IRCTC allotment started. Bank debited messages are coming.

      Well some are predicting “6 working days” required after “closure of IPO bidding” for allotment, let’s wait and see

        It is not a prediction , it is a rule. In the future, it will be reduced to 3 days when UPI becomes compulsory.

    Forwarded as received

    Just talked to concern person… He is saying allottment on 14.. listing on 15 or 16

    Since it’s 8pm now no chance for IRCTC allotment today, all the very best for all of you “tomorrow”

      Got this from Alankit

      Sir, you can check your status online, please visit ipo.alankit.com
      The date of basis of allotment is will show on today evening or tomorrow 10th Oct 2019.

    O.o …. It’s Oct 9th now

    All the very best and wish you all the world’s luck for IRCTC shares allotment 😀😁😗😁

      Got this from Alankit

      Sir, you can check your status online, please visit ipo.alankit.com
      The date of basis of allotment is will show on today evening or tomorrow 10th Oct 2019.

    How do l know if I have been alloted the subscription of IRCTC IPO or not???
    Few of my friends who have applied for the above IPO and had there money blocked through BHIM is now showing the mandate as expired what does that mean. Can someone shed some light on this

      You would have received email from NSE or BSE with bid details, so check your registered mail

    There is some talk (on emails) about unlisted Shares by saying PreIPO catch word, is it worth to invest in unlisted Shares? I mean how can they be sold? Will they get dividends only and no sale with locked up funds?

    Can some one enlighten me regarding this?

    *IRCTC IPO UPDATE*

    Finalisation of basis of allotment: 9 oct 2019

    Initiation of refund: 10 oct 2019

    Credit share to Demat account: 11 oct 2019

    Listing date: 14 oct 2019

    I have applied through ASBA on 3rd oct at 2pm. I have received a mail from NSE that the application received at NSE at4.58pm. I have submitted only single application and same is available in ASBA but NSE is showing 2 application number..but lot number same.

      Similar thing happened for me, the application number for mine is 7 digits in internet banking IPO portal and the confirmation mail from NSE had “211|” prepended to my application number making it 11 digits, but since the endings of numbers are same it’s fine I think

      So no need to worry

        Even I applied for share on 3rd Oct but next day got mail quoting 2bid Id for same quantity of share how it is possible
        Please guide in this regard

    Hi Team, I have doubt on the how the lottery based allotment system works.

    in case if persons is allocated the share whether all shares will be given, which he/she bid or partial no. of shares based on subscription number irrespective of bid no.?
    whether any preference is given to age or gender or bid quantity?
    any tips to improve successful bids for such over-subscribed ipo’s?

      No preference, just computerised lottery for only 1 lot for lucky allotted candidates

      Max. lot allowed for retail category? 15 or 16? I see they are giving discount 10rs./share. Due to this, getting confused on cutoff share size.

      In RETAIL, No use applying more than 1 lot per application since IPO is over subscribed

    ALL APPLICATIONS CAN BE ASBA ONLY.

    ASBA THROUGH BROKER WITH UPI

    ASBA THROUGH NETBANKING

    ASBA THROUGH SUBMITTING FORMS HAVING BANK ACCOUNT DETAILS TO YOUR BANKER’S BRANCH

    On BSE, it is clearly mentioned that for retail investor UPI id in application form is mandatory. Does it means retail investor can’t apply through ASBA !

    hi
    have subscribed for the ipo. got a mail for bidding successful, got the mandate yesterday on SBI bhim pay and approved as well however the mandate still shows as pending on the app, amount not debited. can anyone help i mean whats happening

        hi the problem is i have no mail or sms of even blocking the money. is there anyway i can find out if the amount is blocked or not????

        @Awadhraj

        Check in BSE website for status using your application number and PAN

    Hi! Does it make sense applying for more than one lot, given the IPO is oversubscribed the way it is? I believe there’s going to be a draw for final allotment, and winning retailer investors will all get one lot each. Is that accurate?

    GMP 185+/- 2
    Kostak 1,300/-

    IRCTC IPO – *Market’s Current Estimates of oversubscription*:

    RII = 10.50L Forms = 6XApplic. Wise (Agv allotment of ~ 6.67 shares per lot)
    NII = 35K Crs. = ~364.58X

    Interest cost @8.0%p.a. for 7days = 49.10paise for 1X

    Thus, for NII the costing = 364.58 X 46.03paise = Rs.179.00 per share (= GMP)

    And, for RII the costing = 6.67 X (179.00+10) = Rs. ~1260/- (= Kostak)

    #EAGLEYE

    Hi
    Can i go for this IPO? Because revenue is not that much good for this company. Please suggest

      Hello everyone,
      I have a query ,my parents have demat acc separately but don’t have net banking or bhim UPI (they both have PNB ATM card as well both don’t know the PIN so I m unable to create UPI or Net banking)
      Is there any other way to apply in this??
      Please Help.

        Add there DP ID and Client ID in your net banking and try… This is the risk worth taking…

    May i know Employees reserved means?? Who are eligible?? Indian railway employees or irctc employees??

    Is compulsory apply IPO though UPI now or can be done through ASBA Axis bank ?

      Can be done thorough Axis ASBA as you would do normally, UPI is just another way to apply , UPI method is optional method and not compulsory

      Oct 2nd is holiday normally, but this IPO can be applied from 10 am to 5 pm on Oct 2nd

    IRCTC se ticket book karate Hain to uska server down..

    Jab IPO me booking Kara rahe Hain to banks ke server down…

    *Down, Down, Down…* 🎼🎼🥁🥁🥁🎷🎷🎻🎻
    should be its theme song. 🤣🤣

    On a serious note, most of the *banks*, BHIM UPI app etc are down because of IRCTC only and people are thinking banks mein kuch locha hai..
    *IRCTC ne hila Diya market* 😆😆

    market wizardji i have yes bank shares 500@156 now a days i have a loss so pls suggest me i can hold ya sold at this rate?………….

      But try to exit whenever there is any jump in share price. The problem with share is that it’s own directors are selling shares which means something is seriously wrong in yes bank.

    Hi everyone, i have a query,
    i received mail for confirmation of bid submission but not received upi mandate request by now, what to do?

    how to check my application acceptance (status) after submitting in internet banking ASBA?

        market wizardji i have yes bank shares 500@156 now a days i have a loss so pls suggest me i can hold ya sold at this rate?………….

    IRCTC IPO – *Market’s Current Estimates of oversubscription*:

    RII = 10.50L Forms = 6XApplic. wise (Avg allotment of ~6.67 shares per lot)
    NII = 30K Crs. = ~312.50X

    Interest cost @7.5%p.a. for 7days = 46.03paise for 1X

    Thus, for NII the costing = 312.50 X 46.03paise = Rs.143.84 per share (GMP)

    And, for RII the costing = 6.67X 143.84 = Rs. ~960/- (Kostak)

    IRCTC IPO – *GMP Expected*
    GMP 145/-
    Kostak 960/-

      Why QIB’s come on 2nd and 3rd day? Is it some rule or the QIB’s are checking on demand supply statistics to wait and apply at last moments?

    If you are planning to apply in IRCTC IPO through *Axis* bank account then please don’t wait until the last moment as it’s been throwing *System Busy. Please try again later* for a few hours now. This may happen on last day also.
    *जनहित में जारी*

    Hi Senior members, can you please answer my query?

    I’ve my demat account with IDBI Direct. Through this i have applied for IRCTC IPO. I have submitted my GooglePay UPI ID and the application was accepted. However, I’ve not received the UPI mandate still?

    How long will it take for the UPI Mandate to be generated? Or is my application rejected?When I check status it says file uploaded and does not show rejected?

      Do they allow anyother UPI ? In Angels broking they specifically mentioned BHIM UPI ID only.
      @Marketwizard, if you could shed some lights please ?

        No. MY demat provider confirmed that my application has been rejected. In their email they had mentioned BHIM and supporting UPI apps. Now they say its only BHIM App.

        Stupid people, i couldn’t even apply back again as the cut off time was over 🙁

        Do they allow anyother UPI ? In Angels broking they specifically mentioned BHIM UPI ID only.
        @Marketwizard, if you could shed some lights please ?

        May i know the reason of apply single slot from single App, please ? If they allow, why can’t we apply for as many as we want ?

    1) can we apply for family members from my ASBA account?
    2) which allotment probability is high for IPO? I mean applying for “5 lots on single PAN (myself)” or “1 lot on different PAN (family members)”

    Please can anyone explain me

      No, you can’t apply for the family from a single bank account. Apply a single application from ASBA. Else app will be rejected.

      Apply from different PAN means for family members from my single ASBA account right?

      But bank ASBA account allows 5 application so why not I can’t apply for family members through it (family members means different PAN)

    I am expecting EPS of >25 in FY20 due to reduction of corporate tax to 25.17% which was 34.99% earlier. By this, there would be a saving ~40-50 Cr.

    Moreover, after demonetization to support digital India the government had removed convenience charge which was 20 for Non-AC and 40 AC in Dec-16. Total revenue generated in Fy16-17 was ~ 360 cr. This charge had reduced the revenue from the ticket business by 25%. This means in FY16-17, had this not removed, the IRCTC would have clocked revenue of ~450 Cr from service charge.

    From Sept 2019 onwards, the IRCTC has started levying a charge of Rs. 15 for Non-AC and 30 for AC. That means a reduction of 33% charges as compared to Fy16-17.

    If we consider no growth in the ticket booking and reduction of 33% in service charges, the full-year revenue in FY19-20 would have been close to 300 Cr. Now as we have only 6 months left we can easily add 120 Cr to bottom-line considering there is an advance booking of 2 months.

    Considering the same revenue of FY18-19 in next year as well then we can easily add > 160 Cr to the bottom line of IRCTC.

    The EPS would be > 25.

    If we give P/E of 20 to IRCTC, it can easily surpass 500.

    The no of shares is less for retail and the chances of getting it is very less. Is that correct? Is it better to buy after listing instead. Senior members what are your thoughts?

      IRCTC IPO

      (i) The total size of the IPO is 645 cr.

      (ii) Retail quota = 225 Cr

      (iii) Expected Bid = 2500 Cr( similar to what we see in Rites )

      (iv) So chances of >10x subscription in Retail category.

      Rites return since the IPO launched in July 2018.

      1. IPO Price = 185.

      2. listing was timid at 190 but at the end of the day, the stock closes at 214 which is 15% above from issue price of 185.

      3. Till date, it has given more than 70% return. Plus 4 times dividend of which is equivalent to Rs.15 per share.

    IRCTC – Cut-off time for UPI Mandate Confirmation : 04-Oct-2019 (upto 12:00 PM)

      I had received a UPI mandate to authorize via BHIM app,when i tried ,while authorizing it got failed and now this app doesnt even allowing me to reauthorize it , infact showing error occured while logging in..
      Contacted my broker (sharekhan), contacted bank (sbi) no one is seems helpful here.. can you please suggest a way how i reauthorize the UPI mandate for blocking money?

    One Takeaway from @IRCTCofficial #IPO meet

    Conveyance Charge per Ticket (Rs 15/30) which was withdrawn in 2016 to push for Digital Economy has been started again from September 1, 2019.

    Though little less at Rs10/20, it will help their bottomline and affect Consumer’s pocket

      (i) Everyday 14 lakh people travel through railway.

      (ii) 72% of ticket booked are done online. It means ~ 10 lakh online tickets booked online every day.

      (iii) Increase in revenue of IRCTC from this convenience charge in the FY19-20 will be > 160Cr.

    Finalisation of Basis of Allotment 9-10-2019

    Refunds/Unblocking ASBA Fund 10-10-2019

    Credit of equity shares to DP A/c 11-10-2019

    Trading commences 14-10-2019.

    Business overview of IRCTC and its challenges

    Catering Business

    The major revenue contributor of IRCTC is their catering business. It contributes more than 50% of IRCTC business. The quality of food served by Indian railways is always questioned. Many times we have read in the newspaper for its poor quality and unhygienic way of preparation.

    The CAG in its report published in 2017 on Catering Services in Indian Railways has highlighted several deficiencies in the quality of food and beverages available on trains and in railway stations, including highlighting issues relating to cleanliness and hygiene as well as the overall quality of food available.

    The catering business also faces competition from private vendors who provide direct catering service on selected stations as per choice and having a very good quality of food.

    Tour and Travel Business

    The travel and tourism business of IRCTC contributes around 24% of the revenue. The revenue in the last 3 years has fallen owing to high competition in India.

    Ticket Booking

    This is the monopoly business of the IRCTC and contributes around 12% of the revenue. However, the revenue this segment has fallen in the last 3 years from 469 Cr to 233 Cr.

    Packaged Drinking Water (Rail Neer)

    Rail Neer packaged bottle business contributes 9% of the total revenue in FY19. The packaged drinking water services severe face competition from unorganized traditional food and beverage vendors primarily comprising eateries, hawkers and street stalls, which may be able to offer food and beverages at cheaper prices as compared to us.

    So we can conclude that IRCTC business if not managed properly can give a headache to its shareholders in the long run. Moreover, railways privatization which is on the agenda of Govt. will be a booster for IRCTC.

    (i) IRCTC has one joint venture, RIRTL with Cox & Kings Limited.

    (ii) However, on account of ongoing litigation with Cox & Kings Limited, the IRCTC have not given consolidated financial statements of RIRTL in its financial statements since the Fiscal year 2010 –11

    (iii) Further, Cox & Kings Limited has initiated 2 arbitration proceedings dated November 09, 2011 and July 26, 2012, against RIRTL; one pertaining to the joint venture agreement dated December 10, 2008, and the other pertaining to the articles of association of RIRTL

    (i) Total Share offered= 20,160,000

    (ii) Employee Reservation = 160,000

    (iii) Total for Public= 20,000,000

      Will update the same shortly. It is the much-awaited IPO from Railway.