IRCTC
Mainboard₹638 Cr issue
+101.25%
Listing gain over issue price
Issue size
₹638 Cr
1 lot at cut-off
₹12,800
Lot size
40shares
Open
30 Sep 2019
Close
03 Oct 2019
Allotment
09 Oct 2019
Listing
14 Oct 2019
Listing performance
Issue price
₹320
Listed at
₹644
Listing-day close
₹728.60
Latest price
—
Listing gain
+101.25%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2019 – 03 Oct 2019
- Listing date
- 14 Oct 2019
- Face value
- ₹10 per share
- Issue price
- ₹320 per share
- Lot size
- 40 shares
- Total issue size
- ₹638 Cr
- Promoter holding
- 100.00% → 87.40% pre-issue → post-issue
- ISIN
- INE335Y01012
- Registrar
- Alankit Assignments Ltd.
- Lead managers
- IDBI Capital Markets Services Ltd.
- Registered office
- 11th Floor, B - 148, Statesman House,, Barakhamba Road,, New Delhi - 110 001, India, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
Application size
Minimum 40 shares per lot, in multiples, at ₹320
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 40 | ₹12,800 |
| Retail (max) | 15 | 600 | ₹1,92,000 |
| S-HNI (min) | 16 | 640 | ₹2,04,800 |
| S-HNI (max) | 78 | 3,120 | ₹9,98,400 |
| B-HNI (min) | 79 | 3,160 | ₹10,11,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹320 per share
| Metric | Pre-issue | Post-issue |
|---|
About IRCTC
IRCTC is a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways. Incorporated on September 27, 1999, it is the sole entity authorized by Indian Railways to provide catering services to railways, online railway ticket bookings, and packaged drinking water at railway stations and trains. The company operates www.irctc.co.in, one of the most transacted websites in Asia-Pacific with 15-18 million transactions per month (as of Q1 FY2020). IRCTC generates revenue through railway catering (54.99% of income in FY2019), online e-ticketing, packaged drinking water (Rail Neer brand, 9.28% of income in FY2019), travel and tourism packages, and non-railway catering services including executive lounges and budget hotels.
Company Analysis
from DRHPIndian Railway Catering and Tourism Corporation Limited (IRCTC) provides catering, online railway ticketing, packaged drinking water, and tourism services for Indian Railways and operates in the hospitality and travel sectors.
IRCTC is a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways. Incorporated on September 27, 1999, it is the sole entity authorized by Indian Railways to provide catering services to railways, online railway ticket bookings, and packaged drinking water at railway stations and trains. The company operates www.irctc.co.in, one of the most transacted websites in Asia-Pacific with 15-18 million transactions per month (as of Q1 FY2020). IRCTC generates revenue through railway catering (54.99% of income in FY2019), online e-ticketing, packaged drinking water (Rail Neer brand, 9.28% of income in FY2019), travel and tourism packages, and non-railway catering services including executive lounges and budget hotels.
Railway catering and hospitalityTravel and tourismE-ticketing and online distributionPackaged drinking waterFood services and restaurantsHotel and accommodation services
Objects of the Issue
- This is an Offer for Sale by the Selling Shareholder; our Company will not receive any proceeds from the Offer p.24
- Disinvestment by the Selling Shareholder and achievement of listing benefits p.78
Issue Structure
- Total Issue
- [●] Equity Shares (blank in DRHP)
- Fresh Issue
- No fresh issue; this is an Offer for Sale
- Offer for Sale
- [●] Equity Shares by the Selling Shareholder (The President of India acting through Ministry of Railways)
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price) - to be decided
- Lot Size
- [●] Equity Shares (minimum Bid Lot, to be decided)
- Face Value
- ₹10 per Equity Share
Business Model
IRCTC earns revenue through: (1) Railway catering services on trains and stations with food preparation and distribution; (2) Commission and transaction fees from online railway ticket bookings; (3) Packaged drinking water (Rail Neer) sales; (4) Travel and tourism packages including air ticketing, hospitality, and tour services; (5) Licensing fees from third-party catering operators; and (6) Non-railway catering and hospitality services such as food courts, fast food units, executive lounges and budget hotels.
Business Segments
Provides catering services to passengers on trains and at railway stations including food preparation, distribution, and various catering units (base kitchens, pantry cars, food courts, refreshment rooms, fast food units, Jan Ahars).
Production and sale of packaged drinking water under the Rail Neer brand at railway stations and trains.
Operates www.irctc.co.in to provide online booking and reservation services for Indian Railway tickets and transportation.
Offers travel packages including air ticketing, rail tour packages (RTP), land tour packages (LTP), hotel reservations, cruise packages, and hospitality services.
Provides on-board and station-based catering services to railway passengers including mobile catering through pantry cars and base kitchens, static catering at refreshment rooms and food plazas, and e-catering through partner restaurants
Authorized sole provider of online railway ticket booking for Indian Railways through website, mobile app, and partnerships with OTAs
Offers domestic and international leisure tour packages, luxury trains (Maharajas' Express, Bharat Darshan, Buddhist Circuit), and customized travel packages
Exclusively authorized for manufacturing and supplying packaged drinking water (Rail Neer) at railway stations and trains
Provides online railway ticket booking through www.irctc.co.in and mobile application 'Rail Connect'. As of June 30, 2019, more than 1.40 million passengers traveled on Indian Railways daily, with approximately 71.42% of tickets booked online; more than 0.80 million tickets booked daily through the platform; operates one of the most transacted websites in the Asia-Pacific region with transaction volume of more than 25 million per month and 7.2 million logins per day.
Provides mobile catering services on trains (on approximately 350 pre-paid and post-paid trains) and static catering services at 530 static units including food plazas, refreshment rooms, Jan Ahaars, base kitchens, and e-catering services. Operates 54 base kitchen units, with 36 existing to be renovated and 18 new to be set up. Also manages executive lounges, budget hotels, and retiring rooms.
Manufactures and distributes packaged drinking water under the 'Rail Neer' brand at all railway stations and on trains. Operates 10 plants with installed production capacity of approximately 1.09 million liters per day, catering to approximately 45% of current demand. Has installed 1,950 water vending machines at 600 railway stations. Setting up six new plants and four additional plants approved by the Board.
Provides comprehensive tourism and travel services including rail tour packages, hotel bookings, air ticketing (both domestic and international), cruise packages, and specialized trains (Maharajas' Express luxury train, Buddhist Circuit special train, Bharat Darshan tourist trains, themed trains). Also operates as air ticketing service provider for government ministries and offers corporate travel services.
Online railway ticket booking through website www.irctc.co.in and mobile application; only authorized provider of online railway tickets for Indian Railways; handles 0.80 million tickets daily as of June 30, 2019 representing 71.42% of Indian Railways' online tickets
Provides food catering services to Indian Railway passengers on trains (on-board/mobile catering) and at stations (static catering); operates through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars; e-catering services through 'Food on Track' app and www.ecatering.irctc.co.in; also operates executive lounges, budget hotels and retiring rooms
Only entity authorized by Ministry of Railways to manufacture and distribute packaged drinking water at railway stations and on trains; operates 10 plants with installed capacity of 1.09 million litres per day providing ~45% of current demand; also installs water vending machines (WVMs) at railway stations
Mandated by Indian Railways to provide tourism and travel related services; operates in hotel bookings, rail tour packages, land, cruise and air tour packages, air ticket bookings, Rail Yatri Niwas (tourist accommodation), Maharaja Express luxury train tourism
On-board catering services on premium trains like Rajdhani, Duranto, Tejas, Gatiman and Shatabdi express, and departmental catering operations under the New Catering Policy 2017, including base kitchens and railway station food units
Online railway ticket booking service through www.irctc.co.in portal connecting passengers with Indian Railways Passenger Reservation System
Special trains, coach charters, Buddhist circuit trains, Bharat Darshan trains, and packaged tour operations including the Maharajas' Express luxury train
Manufacturing and distribution of packaged drinking water through vending machines and at railway stations and trains, with operations across seven manufacturing plants
Pilgrimage and spiritual tourism services
SWOT Analysis
Strengths
- • Exclusive monopoly over railway ticketing, catering, and packaged water services(p.29)
- • Highly transacted e-ticketing platform with substantial monthly transaction volume(p.24)
- • Central Public Sector Enterprise status with government backing(p.24)
- • Mini Ratna Category-I CPSE designation providing operational autonomy(p.24)
- • Diversified service offerings with 'one stop solution' positioning(p.24)
- • Exclusive authorization for Indian Railways online ticketing(p.79)
- • Exclusive authorized catering provider to railway passengers(p.79)
- • Sole manufacturer and supplier of packaged water at railway stations(p.79)
- • Comprehensive tourism service provider(p.79)
- • Robust operating systems and controls(p.79)
- • Sole authorized provider of railway catering, online ticketing, and packaged water(p.239)
- • Consistent profitability with strong return on equity exceeding 23%(p.240)
- • Dominant position in e-ticketing with highest transaction volumes in Asia-Pacific(p.239)
- • Monopoly on Rail Neer packaged drinking water distribution across Indian Railways(p.240)
- • Diversified revenue streams across catering, ticketing, tourism and packaged water(p.239)
- • Sole authorized entity for railway ticketing online and catering services(p.267)
- • Dominant position with government support as CPSE under Ministry of Railways(p.242)
- • Significant web traffic leveraging on ticketing platform(p.242)
- • No dependency on specific suppliers or customers(p.267)
- • Strong profitability with consistent operating profit growth(p.247)
Weaknesses
- • Complete dependence on Ministry of Railways policy decisions without assurance of profitability(p.28)
- • Vulnerability to adverse government policy changes demonstrated by past revenue impacts(p.28)
- • Significant outstanding litigation with material financial exposure(p.29)
- • Single point of failure in IT infrastructure without adequate off-site backup(p.31)
- • High contingent liabilities totaling ₹1,667.92 million(p.41)
- • Unable to consolidate joint venture financials due to ongoing litigation(p.42)
- • Dependence on Indian Railways as primary customer(p.97)
- • Tourism revenue concentration and volatility(p.103)
- • Declining market share in packaged water industry(p.111)
- • Heavy dependence on Government of India directives and Ministry of Railways policy changes(p.240)
- • Prior loss of online ticketing service charges due to Government policy reversal(p.241)
- • Pending reconciliation of railway receivables and payables with unconfirmed balances(p.221)
- • Significant audit limitations including unreconciled third-party balances and legacy transactions(p.192)
- • Ongoing litigation and contingent liabilities including VAT cases and Cox & Kings dispute(p.220)
- • Heavy dependence on government directives and policy changes(p.242)
- • Risk of government withdrawal of market directives without notice(p.242)
- • ERP system limitations and inadequate IT infrastructure(p.257)
- • Legacy transaction reconciliation issues persisting from system migration(p.256)
- • Material contingent tax liabilities(p.254)
- • Reliance on Ministry of Railways for policy direction on core operations(p.242)
Opportunities
- • Rapid growth in Indian food services industry at ~11% CAGR(p.24)
- • Expansion of travel and tourism segment growing at 11.2% CAGR(p.24)
- • Reinstatement of online ticketing service charges creating revenue opportunity(p.28)
- • Mandate to expand catering services across Indian Railways through Catering Policy 2017(p.29)
- • Growing internet penetration enabling digital ticketing expansion(p.39)
- • Rail catering revenues projected to grow at 7.5-8.5% CAGR(p.99)
- • E-catering services showing exceptional growth trajectory(p.100)
- • Expansion of base kitchen network(p.99)
- • Strong growth in e-booking and railway bookings(p.121)
- • Increasing domestic tourism driving revenue growth(p.102)
- • Travel and tourism industry expansion(p.101)
- • Mandate to take over all catering services from Indian Railways under Catering Policy 2017(p.239)
- • Expansion of Rail Neer production capacity and new plant installations(p.240)
- • Growing rail passenger traffic and e-ticketing penetration opportunity(p.239)
- • Established position in travel and tourism with brand presence across multiple segments(p.240)
- • E-catering services expansion through mobile app and online platform(p.240)
- • Expansion of catering business across train network(p.248)
- • Growth in concession fees and license fee revenues(p.250)
- • Unbundling model implementation creating operational efficiency(p.249)
- • Rail Neer packaged water business expansion(p.247)
Threats
- • Risk of government permitting open competition in monopoly service areas(p.30)
- • Competition from fragmented and unorganized traditional food vendors(p.32)
- • Exposure to commodity price fluctuations without hedging mechanism(p.36)
- • Water scarcity constraining production capacity(p.36)
- • Regulatory pressure on plastic bottle usage for packaged water(p.37)
- • Labor cost inflation and unionization risk(p.37)
- • Risk of infectious disease outbreaks affecting supply chain(p.45)
- • Global economic slowdown impacting Indian economy and demand(p.44)
- • Flat passenger traffic growth in recent years(p.94)
- • Competition from unorganized and imitation players in packaged water(p.112)
- • Rising competition from water vending machines(p.113)
- • Government water resource restrictions(p.112)
- • Shift in travel preferences toward air travel(p.121)
- • Regulatory uncertainty in data protection and e-commerce(p.123)
- • Government policy changes could adversely impact revenues and operations(p.240)
- • Delays and inefficiencies in Government decision-making affecting growth targets(p.241)
- • Technological disruption and need for continuous system upgrades(p.241)
- • Constraint as CPSE limiting competitive flexibility in private sector markets(p.241)
- • Macroeconomic volatility and external economic downturn impacts(p.241)
- • Economic slowdown impact on consumer spending and government budget allocations(p.242)
- • Government spending reduction during economic downturn(p.242)
- • Volatility in foreign exchange rates and commodity prices(p.242)
- • Regulatory compliance and GST implementation risks(p.242)
- • Multiple pending tax and regulatory disputes(p.273)
- • Risk from joint venture litigation and operational disruption(p.271)
- • Dependence on supplier relationships for catering services(p.242)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| The President of India acting through the Ministry of Railways, Government of India | Promoter | 99.99% | — |
| The President of India | Promoter | 100% | — |
| President of India | Promoter | 100% | — |
| Ministry of Railway, Government of India & its nominees | Promoter (100% holding through President of India) | 100% | — |
| President of India (through Ministry of Railways, Government of India) | Promoter/Selling Shareholder | — | — |
Leadership
Suman Kalra · Company Secretary and Compliance Officer
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
Offer documents
IRCTC IPO FAQs
What is the lot size of IRCTC IPO?
The minimum lot size of IRCTC IPO is 40 shares. One lot costs ₹12,800 at the cut-off price.
When does IRCTC IPO open and close?
IRCTC IPO opened for subscription on 30 Sep 2019 and closed on 03 Oct 2019.
What is the listing date of IRCTC IPO?
IRCTC IPO listed on 14 Oct 2019.