IRCTC Gets Sensational Response From Investors: IPO Subscribed 110 Times, Share Allotment On 9 October

IRCTC Gets Sensational Response From Investors: IPO Subscribed 110 Times, Share Allotment On 9 OctoberIRCTC logo

The Initial Public Offering (IPO) of IRCTC has received a sensational response from the investor community as it has been subscribed a whopping 110 times till 4.15 PM as the IPO draws to a close, Livemint has reported.

The four day long IPO saw a total of 2 crore equity shares up for grabs as the government has devalued its stake down to 87.4 per cent.

The allotment of shares is expected to take place 9 October and the listing on the stock market is tentatively expected to take place on 14 October.

This demand has been driven by the retail investors and bolstered by recommendations from virtually all prominent brokerage houses.

The IPO was listed on 30 September and investors need to buy a minimum lot of 40 shares priced in the band of Rs 315 to Rs 320.

Of the total shares on offer, 50 per cent has been made available for allocation to qualified institutional buyers (QIBs), including 2 lakh equity shares for the mutual fund portion on a proportionate basis.

In addition, not less than 15 per cent of the offer has been reserved for non-institutional investor category and at least 35 per cent will be made available to the retail category.

The IPO has resulted in a lot of excitement in the investor community as IRCTC holds an exclusive license from Indian Railways for e-ticket bookings and catering. It also manufactures the packaged drinking water brand Rail Neer which is a major features on board trains and at railway stations.