IRCTC’S IPO to open on Monday, September 30, 2019 with Price Band of Rs. 315 – Rs. 320 per Equity Share each of Face Value of Rs. 10 each

Indian Railway Catering and Tourism Corporation (IRCTC), the railways’ online ticketing, tourism and catering arm announces the launch of its Initial Public Offering (IPO), in a bid to raise approximately Rs 645 crore at the upper end of the price band.

The IPO, with a price band of Rs 315 to Rs 320 per equity share, will open on September 30, 2019 and close on October 3, 2019.

The issue comprises an offer for sale of 2,01,60,000 shares of face value of Rs 10 each by the President of India, acting through the Ministry of Railways (The Selling Shareholder). Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees. The Company has offered a discount of Rs 10 per Equity Share on the Offer Price for the retail category and to eligible employees.

The Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

The book running lead managers to the offer are IDBI Capital Markets & Securities Limited, SBI Capital Markets Limited and YES Securities (India) Limited.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations”). The Offer is being made through the Book Building Process in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

About IRCTC:

As a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways, 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. IRCTC was 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. It was conferred the status of Mini – ratna (Category-I Public Sector Enterprise) by the Government of India, on May 1, 2008.

IRCTC operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 25 to 28 million transactions per month during the five months ended August 31, 2019. It has 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 customers. Currently, IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.