IRCTC IPO oversubscribed by 112 times

IRCTC emerged as one of the most sought after initial public offerings (IPOs) among public sector undertaking IPOs ever, after it was oversubscribed by nearly 112 times. The issue garnered bids worth over Rs 700 billion, against the Rs 6.4 billion worth of shares on offer. While portions allocated for qualified institutional buyers were oversubscribed by 108.79 times, retail investors by 14.65 times and employees by 5.79 times, the IPO was most in demand among non-institutional investors who oversubscribed it by 354.52 times. The company, incorporated by the government in 1999, was conferred Mini Ratna status on May 1, 2008. Its proposed listing on the stock bourses is part of the government’s disinvestment plans, as it aims to raise Rs 1.05 trillion from divestments in the ongoing financial year (2019-20), up from the Rs 800 billion it had budgeted in the previous fiscal year.