IRCTC's initial public offer (IPO) was subscribed more than three times at the end of Tuesday, its second day of issue.
IRCTC or Indian Railway Catering and Tourism Corporation - the online ticketing arm of the Indian Railways - plans to raise up to Rs. 645 crore through the IPO, which opened for subscription on Monday and will close on Thursday, October 3. The financial markets remained shut on Wednesday, October 2 for Mahatma Gandhi Jayanti, trading will resume the next day.
At the end of trade on Tuesday, bids for 6.56 crore shares were received as against the total 2.02 crore shares on offer under the IRCTC IPO, data from the National Stock Exchange(NSE) till 5:30 pm showed. That marked a subscription of 325 per cent.
IRCTC has set an issue price of Rs. 315-Rs. 320 for the IPO. Half of the total shares on offer are reserved for qualified institutional investors, 35 per cent for retail investors and 15 per cent for non-institutional buyers. The IRCTC IPO can be subscribed to with a minimum of 40 shares, and in the multiples of 40 thereof.
The IRCTC IPO comprises an offer for sale (OFS) of 2.01 crore shares, of which, 1.6 lakh are reserved for its employees.