Indian railway catering and tourism corporation (IRCTC) got an overwhelming response from investors for its maiden share sale or Initial Public Offering (IPO) with bids up to 70,000 crore against actual 640 crores worth of shares, that is 112 times of the actual offer.
This 112 times subscription is the highest bid so far in the history of Indian stock markets for a state owned company for an initial offering.
Most of the brokers, analysts and share market experts advised their clients to subscribe for the IPO because of IRCTC’s unique business model.Price band for the issue is 315 to 320 per share. IRCTC had reported total sales of Rs 1868 crore and Rs 273 profit after tax in last financial year.