IRCTC IPO Review

About Company - IRCTC

IRCTC IPO

The IPO of IRCTC Limited opens on September 30 and closes on October 3, 2019. The company is offering shares in the price band of Rs 315 to Rs 320 per equity share.

About Indian Railway Catering and Tourism Corporation Limited ( IRCTC).

Incorporated in 1999, Indian Railway Catering and Tourism Corporation or IRCTC is a subsidiary of the Indian Railways that handles the catering, tourism and online ticket booking operations of the Indian railways. IRCTC is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under the Ministry of Railways, Government of India. There are 54 lac active users of the site adding 28,000 users everyday and over 7 lac tickets booked on a daily basis.

The main business line of the company is

• Catering & Hospitality:  IRCTC manages the entire on-board catering services of Indian Railways in more than 460 passenger trains with pantry cars. IRCTC also manages various static catering units of Railways such as Refreshment rooms, Jan Ahaars and Cell Kitchenson railway platforms. They also operate executive lounges and retiring rooms on railway stations and budget hotels.
• Internet Ticketing: E-ticketing is the main business of IRCTC. It pioneered internet-based rail ticket booking through its website irctc.co.in, as well as from the mobile phones via WIFI, GPRS or SMS. It also provides an SMS facility to check PNR status and Live Train Status as well. The revenue collection from e-ticket booking till now for this year is Rs. 32,069 crores as compared to Rs 28475 crores from last year. 
• Travel &Tourism: IRCTC through its dedicated web portal irctctourism.com organizes rail-based packages and tours in trains like Bharat Darshan Trains and Aastha Circuit Trains, Buddhist Circuit Tourist train, Majestic Tourist Train, etc. IRCTC also offers a wide range of hotel booking options, air ticketing, and Railway Retiring Rooms to provide the users with a one-stop solution to all their travel needs.
• Packaged Drinking Water (Rail Neer): IRCTC launched packaged drinking water for the rail commuters under the brand name Rail Neer.
•  E- catering: IRCTC allows passengers to book food of their choice from partner restaurants and food outlets through a mobile application while traveling on a train. 

IRCTC IPO Strengths

1. Only entity authorized by the Indian Railways to provide catering services, railway tickets online and packaged drinking water at railway stations and trains in India.
2. Highly lucrative revenue source from catering and selling tour packages business.
3. Attractive pricing and monopolistic nature of business.
4. Fully debt free company.