Govt owned Indian Railway catering and Tourism Corporation is eyeing for a public issue and has filed papers for SEBI node.
- Its primary objective is to sell tickets and manage catering services of Indian Railways is on its way for its Initial public offering (IPO)
- It has nearly 550,000-600,000 bookings everyday is world’s second busiest and highest of 15-16 Lakh tickets everyday. It has its tagline “Lifeline of Nation”.
- It has nearly 7.2 million logins everyday and transaction volume of 25 million per month.
- Its business is divided into four segments: Internet Ticketing, Packaged drinking water “Rail Neer”, Catering and Travel & Tourism.
- Government wants to sell its 20 million shares via this IPO which is about 12.5% of stake to offload to achieve its disinvestment target.
- Sale is up 25% to ₹1899 Cr. While its profits grew @ 23.5% to ₹272.5 Cr in FY 2019.
- More than 50% of its sale is from its Catering business while 12 % from Ticketing.
In Apr’17 Govt has approved listing of IRCON, RITES, RVNL, IRFC & IRCTC. Out of these IRCON and RITES were already listed in 18-19. The disinvestment target in 18-19 was ₹80,000 Cr while they has raised about ₹85,000 Cr, exceeding its budgeted target.
The IPO is expected to land on exchange in Nov’19 first week.
Regards- CA Ram Kishore Gupta
CA Ram Kishore Gupta