Rail PSU Indian Railways Catering and Tourism Corporation (IRCTC) has filed a draft red herring prospectus (offer document) with the securities market regulator SEBI, for listing on the bourses.
The initial public offering (IPO) is likely to be to of about Rs 400 crore.
The IPO, an offer-for-sale by the Government of India, consists of a sale of two crore shares, constituting 12.5 per cent of the post IPO share capital. The entire issue proceeds will go to the selling shareholder, the Government of India as the issue is an offer-for-sale.
IRCTC is present in four business segments namely; internet ticketing, catering, packaged drinking water under the ‘Rail Neer’ brand, and travel and tourism.
In FY19, internet ticketing accounted for 12.35 per cent of revenue, catering 54.99 per cent, water 9.28 while travel and tourism contributed 23.38 per cent.
A debt-free company, IRCTC recorded revenue of Rs 1956.66 crore and a net profit of Rs 272.59 crore in FY19.
The company is in the process of developing its own digital payments pre-paid card with its IRCTC iMudra wallet, besides the payment gateway i-Pay.
IRCTC has also obtained the mandate to run two Tejas express trains between New Delhi- Lucknow and Mumbai-Ahmedabad under the recently introduced concept of ‘private train operator’.
The company’s shares will be listed on the BSE and the NSE.
IDBI Capital, SBI Capital Markets and Yes Securities are the book-running managers to the issue while Alankit is the registrar.
