IRCTC IPO opens: All you need to know about the Rs 645-crore issue

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IRCTC IPO opens: All you need to know about the Rs 645-crore issue

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IPO size: Rs 645 crore

Government-owned IRCTC has hit the primary market through a Rs 645-crore initial public offer (IPO). The IPO closes on October 3.

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Govt stake sale: 12.6%The government is selling 12.6% stake or 2.01 crore equity shares (20 million shares) which will bring down its stake to 87.4%. 

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Price band: Rs 315 to Rs 320 per share
IRCTC shares are available in a price band of Rs 315 to Rs 320 per equity share.

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Discount for retail investors, employees: Rs 10 per share
Of the total shares on offer, 50% will be available for allocation to qualified institutional buyers (QIBs), including 2 lakh equity shares for the mutual fund portion on a proportionate basis. Another 15% of the offer is allocated to non-institutional investor category and 35% will be made available to the retail category. Additionally, there's a discount of Rs 10 per share for retail category and eligible employees.

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Listing date: October 14
The tentative date for listing of IRCTC shares on BSE and NSE is October 14.

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Lot size of shares: 40
The lot size or minimum order quantity in the IPO is 40. At the effective price band of Rs 305-310 per share after taking into account discount of Rs 10 per share, retail investors have to spend Rs 12,200-12,400 per one lot.

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Estimated market cap: Rs 5,120 crorePost listing, the market capitalisation of the government-owned firm is pegged at Rs 5,120 crore at the higher end of price band.

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FY 19 net profit up 24%, revenue up 25%Total revenue growth increased 25% y-o-y to Rs 1,956.5 crore for fiscal ended March 2019 compared with Rs 1,569.5 crore earned for fiscal ended March 2018. Profit after tax growth also rose 23.6% year-on-year to Rs 272.5 crore as of March 2019 against Rs 220.6 crore booked during the same period last year. Its sales rose 25% year-on-year to Rs 1,899 crore, as per the draft red herring prospectus filed with Sebi in August.