IRCTC shares subscribed 112 times; highest for a state-owned company

The brokerage said that based on the earnings projection for the next financial year, the stock was valued at a price-to-earnings multiple of just 10x

Online railway ticket booking platform Indian Railway Catering and Tourism Corporation (IRCTC) got a resounding response to its maiden share sale, on Thursday. The issue garnered bids worth over Rs 70,000 crore, against the Rs 640 crore worth of shares on offer.

The 112x subscription was the highest for an initial public offering (IPO) of a state-owned company, bolstering the Centre’s drive to raise nearly Rs 1 trillion through disinvestments in the remaining half of the fiscal year. Even on an overall basis, the subscription was the highest in 18 months for an IPO.

Most analysts had advised their clients