IRCTC Limited IPO – Company Profile, Price, Analysis, Update
Update: IRCTC Listing
IRCTC made a blockbuster debut on Monday, closing 127 percent higher from its issue price. The IPO doubled investors’ money in a single day.
On October 14, 2019, the stock was listed at INR 644 on the Bombay Stock Exchange, a 101.25 percent higher over its issue price of INR 320 per share. The share gained as much as 132 percent to hit an intraday high of INR 743.80 while the day’s low was INR 625.
IRCTC is a Mini-Ratna Category-I Public Sector Enterprise and a wholly-owned subsidiary of the Indian Railways.
The company with its profitable and debt-free status along with healthy dividend payout is looking attractive for long term perspective. Finblab feels it is definitely a portfolio stock and will be a wealth generator in years to come.
The Indian Railway Catering and Tourism Corporation Limited also popularly known as “IRCTC” – a Mini Ratna (Category-I) Central Public Sector Enterprise under Ministry of Railways, Government of India is planning to raise INR 635.04 Cr (all OFS) via initial public offer (IPO)
IRCTC: Company Profile
Incorporated in the year 1999, state-owned Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a wholly-owned subsidiary of Indian Railways.
The Company incorporated with the 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.
IRCTC: Business Activities
IRCTC is 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.
The Company have also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels, which are in line with its objective to build a one stop solution for its customers.
IRCTC Operates In 4 Business Segments, Namely –
Internet Ticketing: IRCTC is the only entity authorized by Indian Railways to offer railway tickets online through its website and mobile application, the irctc app. IRCTC has a mobile app (Rail Connect) and a dedicated website to offer online railway ticket booking facility. The Company currently operate one of the most transacted websites in the Asia-Pacific region with a transaction volume of more than 25 million per month and 7.2 million logins per day.
Catering Services: IRCTC provides food catering services to Indian Railway passengers on trains and at stations. The Company provide catering services through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars over the Indian Railways network.
The Company also offer e-catering services to passengers through its mobile application, namely Food on Track and its e-catering website, www.ecatering.irctc.co.in. It also operates executive lounges, budget hotels, and retiring rooms for the convenience of the travelling passengers on Indian Railways.
Packaged Drinking Water: It is an authorized manufacturer and distributor of packaged drinking water on trains and at railway stations. The company manufactures packaged drinking water under brand name “Rail Neer”
Travel and Tourism: IRCTC is specialised in rail tourism. It offers tourism and travel services across diversified segments such as air, land, rail, and cruise tour packages, hotel bookings and air ticket bookings.
Company Strengths
- Authorised by the Ministry of Railways to offer Indian Railway tickets online
- Authorised catering service provider to passengers traveling by Indian Railways
- Comprehensive tourism and hospitality service provider in India
- Exclusively authorized for manufacturing and supplying packaged drinking water at railway station and trains
- Robust operating system and internal controls
- Qualified and experienced employees and management team
Company Promoters
The President of India acting through the Ministry of Railways is the promoter of the company.
IPO Opening / Closing Date
IPO Details: Price, Minimum Bid and Other
IRCTC Limited: Financials
CONCLUSION –
Considering the company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Indian Railway Catering and Tourism Corporation Ltd (IRCTC) IPO
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