IRCTC Stock lists at double the IPO Price on NSE
IRCTC IPO has become the best performing IPO in the last three years as the railways operator listed on stock markets at INR 685. IRCTC IPO was oversubscribed 112 times and the strong listing was expected by majority of market experts. As the trading session is ongoing, IRCTC could list in range of INR 700 but a closing above INR 700 would be another positive for the company.
IRCTC offered shares at Rs 320 and the success of this IPO will offer the much needed relief for Indian government, trying to boost investor and business sentiment. IRCTC IPO offered 2.01 crore shares of Rs 10 face value. IRCTC is the only company allowed catering services to Indian railways and the monopoly in this segment allows the company to report strong profit.
Indian government sold 12.6 percent stake in IRCTC for Rs 650 crore. The government currently owns 87.4 percent stake in IRCTC.
IRCTC reported a net profit of ₹272.6 crore in FY19, up from ₹220.6 crore in FY18. The company's revenue grew to ₹1,867 crore in FY19 from ₹1,470 crore in FY18.
The strong debut of IRCTC has come after March 2017 debut of Avenue Supermarts, the retail company that listed at almost double the issue price.