Indian Railway Catering and Tourism Corporation Ltd.'s initial public offering became the most successful maiden issue in more than 20 months, driven by demand from institutions and rich investors.
The Rs 644-crore IRCTC IPO received demand for 111.95 times the shares on offer—or for Rs 72,095.80 crore—on the closing day, according to data disclosed by the National Stock Exchange and the company. That makes it the best IPO by subscription since Apollo Micro Systems Ltd. and Amber Enterprises India Ltd. went public with a demand for more than 150 times in January 2018.
The IRCTC IPO was fully subscribed on the second day itself. High-net-worth and institutional investors drove oversubscription. The portion set aside for qualified institutional bidders and rich investors was subscribed by 108.79 times and 354.52 times, respectively. The shares allocated for retail investors and employees received 14.94 times and 5.82 times demand, respectively.
IRCTC's offer is the biggest and the most successful among the four railway companies that have gone public.
IRCTC received better response than the recent IPOs of public sector peers as the government offloaded stake to meet its disinvestment target.
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