New Delhi, Oct 18:
Investors may be rejoicing Indian Railway Catering and Tourism Corporation’s (IRCTC’s) blockbuster listing, but the railways is not happy with the pricing of the public sector e-commerce company’s valuation.
The national transporter has lodged a protest about the price at which shares were offered to investors and has sought better due diligence for future transactions, given the long pipeline of public offers of state-run companies.
IRCTC shares, which were offered at Rs 310 to retail investors and its employees, and at Rs 320 to other investors during the book-building process, listed at Rs 644 on the BSE and closed at Rs 729 on Monday, valuing the company at nearly Rs 11,700 crore.
On Wednesday, the stock closed at a shade above Rs 700, with the market cap pegged at Rs 11,210 crore. In terms of over-subscription, the railway PSU offer was the most successful issue by a state-run company.
In contrast, the government raised Rs 645 crore for a 12.6% stake that it sold, which valued the company at over Rs 5,000 crore, raising a question marks over the valuation undertaken by the merchant bankers. IDBI Capital Markets, SBI Capital Markets and Yes Securities managed the issue.