The Initial Public Offering (IPO) of the Indian Railways Catering and Tourism Corporation (IRCTC) has become a big it at the stock market - especially retail investors as it now has been subscribed 1.44 times on just the second day, Moneycontrol has reported.
As per the report, the IPO bid has received bids for 2.91 crore shares as compared to the available equity of 2.016 crore shares. This demand has been driven by retail investors whose 35 per cent portion has been oversubscribed 2.88 times. Non-institutional investors meanwhile have utilised 50 per cent of their quota.
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.
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