IRCTC IPO 2019 – Issue Details, Balance Sheet & Company Highlights




  • Initial Public Offer of up to 2,01,60,000 equity shares through an Offer for Sale by GOI.
  • The objects of the Offer:
(a) To carry out the disinvestment of 2,01,60,000 Equity Shares by the GOI constituting 12.60% of our Company’s paid up Equity Share capital.
(b) To achieve the benefit of listing on Stock Exchanges.

IPO NOTE IRCTC Issue Details


IPO NOTE IRCTC Shareholding Pattern


IRCTC operates primarily in four businesses:

1. Internet ticketing (12% of Revenue) – IRCTC is the only entity authorized by Indian Railways to offer railway tickets online through website and mobile application. As of August 31, 2019, more than 1.40 million passengers travelled on Indian Railways on a daily basis, of which approximately 72.60% of tickets were booked online.

2. Catering (55% of Revenue)- IRCTC provide food catering services to Indian Railway passengers on trains and at stations. For food ordering three options are available :
a) On-board catering services, where freshly prepared food are delivered in running trains
b) Catering services at stations, through IRCTC approved vendors 
c) Food can be ordered through mobile app. Vendors are IRCTC approved. For example one order Domino’s pizza through this app. while traveling.

3. Packaged drinking water (10% of Revenue) - IRCTC is the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water (Branded as Rail Neer) at all railway stations and on trains. Currently, IRCTC operate ten Rail Neer plants which caters to approximately 45% of the present demand. IRCTC is in the process of commissioning 4 more plants by 2021 to meet entire demand in house.

4. Travel and Tourism (23% of Revenue) - IRCTC also provide tourism and travel related services. It has footprints across tourism segments be it hotel bookings or complete holiday package through rail, land & cruise along with tour packages and air ticket bookings.


IPO NOTE IRCTC Financial Performance




IPO NOTE IRCTC Segmental Results


  • IRCTC enjoys monopoly business in online rail ticket booking and food catering on running trains. Mobile application based food ordering is gaining fast traction among travellers. It provides multiple caterers in tune with today’s taste and preferences of commuters.
  • We expect food catering and travel tourism segments to grow in mid teens while operating margins of packaged water division to improve as more plants are commissioned.
  • Strong fundamentals and debt free balance sheet along with decent return ratios; ROE being 26%, operating margins of 20% and PAT margin at 15% augurs well. We expect revenue and PAT Cagr of 20% plus for next couple of years.
  • IPO looks conservatively priced at a PER of around 19x based on FY19 earnings.
  • We recommend subscribe.

Dharmesh Kant
Head - Retail Research
+91 22 6240 6402

IPO NOTE IRCTC Disclaimer 1

IPO NOTE IRCTC Disclaimer 2

IPO NOTE IRCTC Disclaimer 3

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Corporate Tax Cut - Impact of Tax Proposals on Key sectors

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The recipients may take their decisions based on their own judgement and independent advice that they may receive before making any investment or disinvestment decisions. The recipients are advised not to take any decision only on the basis of this document. No portion of this document should be printed, reprinted, redistributed, reproduced, duplicated or sold. Disclaimer: This document is the property of IndiaNivesh Group (IndiaNivesh) and for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only.)

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NIIT Limited Buyback 2019 Overview

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