indian Railway Catering and Tourism Corp’s initial public offering was subscribed over 100 percent in the early hours of the second day of subscription on Tuesday.
At 10:30 AM, the IRCTC IPO received bids for 21,687,840 shares against the total issue size of 20,160,000, according to provisional data available on the NSE. The IPO was subscribed 1.08 times so far.
At the end of the first day of subscription on Monday, the IRCTC IPO was subscribed 81 percent. The non-institutional investors’ category was subscribed 21 percent and that of retail individual investors 2.23 times
The IRCTC IPO, which will close on October 3, is priced between Rs 315 and Rs 320 per share.
Most brokerages have recommended ‘subscribe’ recommendation on the IRCTC IPO, given its reasonable valuation and monopoly in the Indian railways.
The analysts also note that the key risk and concerns for the company remain change in the policy of Ministry of Railways could impact financials, competition could pose a risk to its monopoly position, and stricter regulatory requirements for use of plastic.
The share sale comprises an offer for sale of 2 crore shares, representing 12.50 percent of total paid-up equity by the Ministry of Railways.
