Yes. You heard it right. The largest Tourism and Catering wing of the Indian Railways (IRCTC) has decided to go public on Septemeber 30, 2019. And, the last date for bidding is October 3, 2019.
IRCTC plans to raise around ₹645 crores through this Initial Public Offer (IPO). The Company will sell 20.16 million shares with a face value of ₹10 and a fixed price band at ₹315-320 per equity share.
By the end of the IPO, the overall shareholding of the Indian Government in its Railways would drop to 87.40%. Anyhow, the funds that will be raised out of the IPO would go towards the government as they own majority stakes in the firm.
Meantime, also watch:
IRCTC makes money out of these four businesses mentioned below:
Here is a quick snapshot of the Catering & Hospitality business of IRCTC:
IRCTC holds the leading position in catering to the needs of railway passengers traveling across the nation. In case of absence of a pantry car, there is Train Side Vending (TSV) section that takes on-board orders.
Meantime, IRCTC remains underway modification process of pantry cars of trains with modern equipment. This redesigned version would be fully air-conditioned LHB coaches. It will also include accommodation for kitchen staff.
Under the Static Catering business, IRCTC manages Refreshment rooms, Jan Ahaars, and Cell Kitchens. These entities focus on the passengers moving along the Railway platforms. IRCTC is also setting up meal production and meal distribution in trains through base kitchens.
In order to service the mid-segment and high-end passengers, IRCTC has already opened 8 Executive Lounges in the railway stations at Visakhapatnam, New Delhi, Vijayawada, Agra Cantt, Jaipur, Ahmedabad, Madurai, and Sealdah. This idea is based on the concept of airport lounges. IRCTC plans to build more such relaxing places in other major railway stations too.
Retiring rooms and budget hotels remain as the next area of key focus in the hospitality segment.
Nowadays, around 70% of reserved tickets are booked online. As per IRCTC data, almost 7.78 lac tickets were sold daily through the website in 2018-19.
Quite remarkably, the revenue collection out of ticket fare collected in 2018-19 was 12.62% higher than the previous year.
After establishing in 1999, IRCTC remains the only organization that offers packages ranging from Rs. 900 per day to USD 900 per day.
Rail based Tourism includes Rail Tour Packages (at present more than 70 packages are available), Special Tourist Trains (like Bharat Darshan Trains), Special Interest Trains, and Buddhist Circuit Tourist Train and many more.
Air tickets are also booked on IRCTC Air Portal www.air.irctc.co.in that handles more than 15 million transactions on a daily basis.
IRCTC’s Rail Neer is processed, purified, and bottled at state-of-art plants. The Company has eleven operational Rail Neer plants at multiple locations in the country. Currently, the cumulative production sums to 11,64,000 bottles per day. This production might jump to 16,24,000 bottles per day by FY19-20 after setting up six more plants.