Irctc’s ipo having price band 315-320 will come on floor on 30th Sept. Is it worthy enough to apply?
We would be able to share the views on the same after the official announcement (which is set for 4:30 PM today at a broker/analyst conference in Mumbai).
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The IPO of IRCTC will be open from September 30th, 2019 to October 3rd, 2019. The company is offering shares in the price band of Rs 315-320. A discount of Rs. 10 on the issue price is applicable for investors in the retail and employee categories.
About IRCTC
Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a central public sector enterprise, under the administrative control of the Ministry of Railways, 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. Conferred with ‘Mini-Ratna-I’ status in 2008, the company was incorporated with the objective to upgrade, modernize and professionalize catering and hospitality services at railway stations and on trains to promote international and domestic tourism in India through public-private participation.
Issue details
Offer for sale of up to 20,160,000 Equity Shares. (The offer will constitute upto 12.60% of the post offer paid up Equity capital)
Net Issue size: Rs.628 Cr - 638 Cr
No. of shares: 20,160,000 Equity shares
Face value: Rs.10
Retail portion: 7,000,000 Equity Shares
Employee portion: 160,000 Equity Shares
Price band : Rs.315 - 320
Bid Lot: 40 Shares and in multiple thereof
Retail & Employee Discount: Rs.10/- per share
Face value: Rs 10
Maximum retail subscription amount: Rs.2,00,000
Listing on: both NSE and BSE
Post Issue Implied Marker Cap = Rs.5,040 – 5,120 Cr
Indicative Timetable
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
How to apply for the IRCTC IPO?
You can check current and upcoming IPOs here and apply in three steps -
- Create UPI ID on BHIM UPI app
- Apply on Console using your UPI ID
- Check mandate notification on BHIM UPI app and approve with UPI PIN
We will soon follow this up with IRCTC’s IPO analysis report powered by Finception.
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Can I fill all the option? 1 2 and 3 as given in screenshot.
Can I bid 3 different quantity at cutoff prices?
How these 3 options help ?
@mohitmehra @nithin
Hi Akash, you can place up to three bids in an application. The best bid of the three is selected by the RTA when he processes your application.
You can check this article on the Support Portal which addresses your query.
P.S. You can bid 3 different quantities at cut-off. The highest quantity will be selected by the RTA as your bid. When you are being allotted the shares, however, you might not receive the highest quantity as per your best bid for if the issue is oversubscribed. In such cases, you may also receive no allotment.
Does applying in HNI category I.e investing more then 2lakh increases the chance of allotment as there will be fewer applicants as compared to retail category. Is it correct?
I believe IRCTC IPO would be a worth to look at.
I mean what a government company with almost no debt, amongst the most viewed website in the world, more than 21million customers,
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This is a monopoly business processing about 800,000 tickets daily
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OveIRCTC has a good dividend pay-out track record, as it paid 50% average payout in the last 3 years the past two years, though, IRCTC has clocked 10.3% annual growth, with revenues rising to ₹1,868 crores in the fiscal year 2019.
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IRCTC has a good dividend pay-out track record, as it paid 50% average payout in the last 3 years
These are a few takeaways from this stock, it seems bullish when it comes to investing. It may fetch some handsome returns to the shareholders once listed out. Since there are lot many stocks falling down due to internal manipulation or some major pitfalls.
For instance, Yes Bank has gone to its 10 year low. No signs of recovering, since increasing NPAs of financial institutions has led to the negative returns for optimistic shareholders.
Stocks like IRCTC seems to be a fair and favourable option to look forward. You can get more details about the IRCTC IPO here and then you can use Zerodha or any bank providing ASBA facility.
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Hi, I have few queries.
i. Once we place IPO order from console, We enter the upi ID, qty and price then agree and place the order. We will get the popup of order placed. And you should inform also to accept the mandate in the App.(Some might think the amount will be blocked automatically, without allowing the mandate in UPI).
ii. After placing we do have an option to edit/delete the IPO. If we delete, When will the amount will be unblocked? (Will it be immediately or after the Refunds/Unblocking date)
iii. Is it possible to check the IPO order history?
And thanks for the wonderful and a awesome features… Zerodha
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How are shares allotted in hni category. Does it increase chance of allotment as compared to retail category.
@mohitmehra @sabkaview
NO idea . it has been over a decade i have applied in an ipo . do remember last was ipo of Care rating …distinctively remember because faced lot of issues when axis bank did blunder when my duly honored cheque was credited to some one else application whose cheque bounced . only after over a month persuasion with Angel securities (where i submitted the application ) and Axis bank (clearing bankers ) and Karvy plus involving the officials of Care rating , the issue was settled by axis bank in my favor .
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Do remember the risk of investing in a company like IRCTC - presently they have a monopoly over ticket booking and catering service. If the Government were to open this up, IRCTC’s profitability would drop dramatically. Likewise, any Govt action like waiver of booking charges post demonetization could wipe out a large chunk of revenues / profits, while maintaining the cost structure.
This is an ideal IPO where you must, more than most other corporate IPOs, consider the risks, not just the upsides.
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Risk of investment is always there in any kind of investment you do in market. It is all about selecting the right company to invest and right time to invest. Happy Investing!!
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Assume QIBs, HNIs and RIIs apply for 200 shares each (Where the total issue size is 100 shares). Here, the total demand is for 600 shares. As per the category wise reservation, QIBs will get atleast 50 shares, HNIs will get atleast 15 shares and RIIs will get atleast 35 shares. The likelihood of getting allotment is highest in this scenario for a QIB followed by RIIs and then HNIs.
Lets examine another scenario. QIBs apply for 1000 shares, HNIs apply for 30 shares and RIIs apply for 350 shares. The total issue is 100 shares and reservation across the three categories stands the same at 50, 15 and 35 for QIBs, HNIs and RIIs respectively. In this case, likelihood of getting allotment is highest for HNIs, followed by RIIs and then QIBs.
So, depending upon the interest received from each category, likelihood of receiving allotment changes.
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i. Thanks for the suggestion, @mariO. We will implement this to make it more clear. Currently, we have been sending an email with the directions. Also, an SMS and notification is received from the UPI app being used. The exchange sends an sms at the end of the bidding day requesting the investor to proceed with the mandate.
ii. If you delete the application, the funds are supposed to be released in real-time by your bank. With the UPI ASBA process still in its nascent stages, we have found that some banks are taking a few days. We have reported this to NPCI and the sponsor banks. Over time, this should be fixed.
iii. You will have email and sms records of your order. However, currently, on Console you won’t find an option for IPO order history.
Yes but let’s say there are 100 shares to be alloted and application received are 110 so in this case will 100 applications would be allotted only 1 shares .Is this true for all three categories or only for retail category.
Also where we can check live ipo application status .
In case the number of applications is much higher than the shares available for allotment then a draw of lots is made to for allocating shares to retail investors. However, for HNIs and QIBs the allotment is pro-rata.
The retail allotment process:
Assume 10 retail investors have applied for an IPO at the cut-off or upper price band. Each investor has made an application in the range of 1 to 5 shares. A list of these investors and shares applied would look something like this:
If the total number of shares to be allotted is 5 then the allotment could be made in the following manner:
There could have been more investors who applied. However, if they applied at a price below the upper price band then their bids would not have been considered. Alternatively, if this public offering saw lower public interest then the issue price could have been any price in the price band which ensures maximum subscription. According to guidelines an issue must be subscribed by at least 90% for it to list, if the issue fails to hit that limit even after the underwriter’s assurances the IPO will be scrapped and the amount returned to the bidders.
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