IPO Period : 30^th Sep’19 – 3^th Oct’19

Name : Indian Railway Catering and Tourism Corporation Limited (IRCTC)

(https://en.wikipedia.org/wiki/Indian_Railway_Catering_and_Tourism_Corporation)

Incorporation: 1999

Location: 16, Parliament Street, New Delhi, India

Function/Objectives:

• 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.

Segments:

1. Travel & Tourism : IRCTC provides services related to Air, Land, Rail and tour packages along with hotel  bookings
2. Packaged Drinking Water: Manufactures & distributes water with brand name “ Rail Neer” at Railway stations across India.
3. Catering Services: It provides food catering service at both on board & through booths at stations.
4. Internet Ticketing: It offers a dedicated website and app (Rail Connect) to book tickets online.

Promoters: President of India acting through Ministry of Railways.

Financials:

Figures ‘Rs. In Cr.’

Particulars	31-03-2019	31-03-2018	31-03-2017
Assets	2583.78	2319.11	1826.45
Revenue	1956.67	1569.56	1602.85
PAT	272.60	220.62	229.08

Objects

1.  Disinvestment by the selling shareholder and

2. To achieve benefits  of listing on Stock exchange.

GMP ( Grey Market Premium)/GMP IRCTC

GMP of IRCTC is Rs. 140-150 per share

Conclusion

Looking at Monopoly on Railway Ticket booking and P/E of 18 along with good track record of Dividend distribution, one may apply for Listing Gain or for long term perspective.

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Disclaimer: The conclusion given is solely on the basis of experience of blog writer and is based on his personal experience; one should do his own analysis and study before reaching to any conclusion. Neither IPO Research nor writer will be held responsible for any loss on investment to reader without proper analysis.