IPO IRCTC HOW TO INVEST IN IPO IRCTC

• IPO IRCTC
  HOW TO INVEST
  
  
• GYAN KI BAAT
• PERSONAL FINANCE
• DR SHASHI AGGARWAL
• IPO DETAILS

1. INDIAN RAILWAY CATERGING AND TOURSIM CORPORATION LIMITED INCORPORATED 27 SEP.1999 AS PUBLIC LIMITED
2. PROMOTER : THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF RAILWAYS GOVERNMENT OF INDIA
3. GROSS OFFER : 20,160000 SHARES
4. NET OFFER :20,000,000 SHARES
5. EMPLOYEE RESERVATION =1,60,000 SHARES( RETAIL DISCOUNT AND EMPLOYEE DISCOUNT ) 10 RS PER SHARE ON OFFER PRICE
6. IPO DETAILS
7. PRICE BAND 315 TO 320 PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH
8. BIDS CAN BE MADE FOR A MINIMUM OF 40 EQUITY SHARES AND IN MULTIPLES OF 40  EQUITY SHARES THER AFTER
9. RECOMMENDED FOR LONG TERM INVESTOR

• RISK TO INVESTORS
  
  

1. THE THREE BOOK RUNNING LEAD MANGERS ASSOCIATED WITH THE OFFER PHAVE HANDLED 25 PUBLIC ISSUES IN THE PAST THREE YEARS OUT OF WHICH 11 CLOSED BELOW THE ISSUE PRICE ON LISTED DAY
2. THE PRICE EARNING RATIO BASED ON DILUTED EPS FOR FY 2019 FOR THE ISSUE AT END OF THE PRICE BAND IS HIGH 18.78
3. THE AVERAGE COST OF THE ACQUISITION PER EQUITY SHARES FOR OUR PROMOTERS IS RS 1.25 PER EQUITY SHARE. THE OFFER PRICE AT THE UPPER END OF THE PRICE BAND IS 320

• HOW TO APPLY
• APPLICATION SUPPORTED BY BLOCKED AMOUNT  AND TO BE AVIALED BY THE INVESTOR
• UPI MAY BE AVIALED BY RETAIL INVESTOR
• ASBA FORM CAN BE DOWNLOADED BY FROM THE WEBSITE OF BSE AND NSE AND CAN ALSO BE OBTAINED FROM THE REGISTERED OFFICE OF THE COMPANY ,NEW DELHI
• ICICI BANK LIMITED : SPONSOR BANK
• IPO DETAILS
• BOOK RUNNING AND LEAD MANAGER

1. IDBI CAPITAL
2. SBI CAPITAL MARKETS LIMITED
3. YES SECURITIES

·         BANKER TO OFFER :- HDFC BANK LIMITED AND ICICI BANK LIMITED

·         REFUND BANK PUBLIC OFFER ACCOUNT BANK SPOSNSOR : ICICI

• WHAT IS UPI
• UNIFIED PAYMENT INTERFACE
  IMMEDIATE TRASFERING FUNDS BETWEEN THE TWO BANKS THROUGH MOBLIE PLATFORM
• INSTANT TRASFER AND 24 HOURS
• SINGLE MOBILE APPLICATION FOR ACCESSING MULTIPLE ACCOUNT

• IRCTC
  INDIAN RAILWAYS CATERING AND TOURISM CORPORATION

1. MINI RATNA COMPANY
2. CATERING: SELLING FOOD ON RAIL JOURNEY
3. TRAVEL&TOURISM ( TOUR AND DESTINATION,SPECIFIC PACKAGES)
4. E TICKETING
5. PACKEGED DRINKING WATER ( NEER BRAND)

• REVENUE DETAILS
• OTHERS

1. NON RAILWAY CATERGING AND SERVICES SUCH AS E-CATERING ( PARTNERS WITH LOCAL RESTAURENTS AND GETS FIXED PERCENTAGE OF REVENUE
2. EXECUTIVE LOUNGES AND BUDGET HOTELS TO ITS CUSTOMERS

• ADVANTAGE

1. THE IPO IS AN OFFER FOR SALE WITH THE GOVERNMENT DIVESTING 12.6% STAKE IN THE COMPANY
2. THE INDIAN RAILWAY HAS AUTHORISED ONLY IRCTC TO PROVIDE CATERING SERVICES TO THE RAILWAYS ON LINE RAILWAY TICKETS AND PACKAGE DRINKING WATER AT RAILWAY STATION AND ON TRAINS IN INDIA AND DOMINANT PLAYER IN RAILWAY RELATED PRODUCTS
3. 70% OF THE TRAIN TICKETS BOOKED ON LINE IN FY 19 BY IRCTC

• RISK AND VALUATION
• BIG CHALLENGE IF THE GOVT ALLOWS A PRIVATE PLAYER TO SELL PRIVATE PLAYERS SIMILAR PRODUCTS
• VALUATION
• PRICE TO EARNING RATION=18,8 TIMES
• QUITE ATTRACTVE

• ADVANTAGE

1. ITS WEBSITE HAS TRANSACTIONS VOLUME OF MORE THAN 25 MILLION PER MONTH
2. ACCORDING TO CRISIL : ON LINE RAIL BOOKING ARE EXPECTED TO GROW AT 8%
3. ALSO CATERING CLOSE TO 45% OF 1.8 MILLION LITERS PER DAY OF THE TOTAL AVERAGE DEMAND FOR PACKAGINGDRINKING WATER

• FINANCIAL PERFROMANCE
• IN THE PAST FINANCIAL YEARS THE COMPANY’S TOTAL REVENUE GREW AT A CAGR OF 10.4% TO 1956 CRORES
• AS OF FY 2019 THE COMPANY HAS OPERATING PROFIT MARGIN AND NET PROFIT MARGIN CLOSE TO 20% AND 14 % RESPECTIVELY
• HAD CASH AND CASH EQUIVALENT OF 140 CRORES