The Initial Public Offering (IPO) for Indian Railways Catering and Tourism Corporation (IRCTC) is off to a flying start with the 35 per cent share allotment for retail investors already getting fully subscribed, Moneycontrol has reported.
The IPO which opened today (30 September) was subscribed 45 per cent at 2.20 PM after receiving bids for 91,18,680 shares against the total issue size of 2,01,60,000 shares. It is the fourth largest IPO in the history of Indian stock market.
As part of this IPO, the government would divest 12.5 per cent of its share in the Indian Railways subsidiary.
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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