About the Company:
IRCTC Ltd is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
IRCTC is a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways,
Company operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 15 to 18 million transactions per month during the three months ended June 30, 2019.
Company has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels, which are in line with our objective to build a “one stop solution” for our customers.
Currently,company operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.
As of June 30, 2019, Company had 1,388 full time employees across business verticals including more than 350 graduates from the Institute of hotel managements and Food Craft Institutes with expertise in hospitality industry.
Company’s Business Segments:
Company is the only entity authorized by Indian Railways to offer railway tickets online through website and mobile application.
As of June 30, 2019, more than 1.40 million passengers travelled on Indian Railways on a daily basis, which consisted of approximately 71.42% of Indian Railways’ tickets booked online.
As a result, there are more than 0.80 million tickets booked through www.irctc.co.in and “Rail Connect” on a daily basis.
Company currently operates one of the most transacted websites in the Asia-Pacific region with a transaction volume of more than 25 million per month and 7.2 million logins per day.
The booking of railway tickets through the internet is now available 24 hours per day, 365 day per year, with the only exception being daily maintenance closure from 23:45 hours to 00:20 hours.
Company provides food catering services to Indian Railway passengers on trains and at stations.
Company provides catering services for approximately 350 pre-paid and post-paid trains and 530 static units and also provides catering services through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars over the Indian Railways network.
All other catering units, such as refreshments rooms at stations categorized at B or below, AVMs, milk stalls, and trolleys are managed by zonal railways.
Company offers e-catering services to passengers through our mobile application “Food on Track” and our e catering website, www.ecatering.irctc.co.in.
Company also operate executive lounges, budget hotels, and retiring rooms for the convenience of the travelling passengers on Indian Railways.
Packaged Drinking Water (Rail Neer):
IRCTC manufactures and distributes packaged drinking water under brand “Rail Neer”.
Company is the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water at all railway stations and on trains.
Currently, company operates ten Rail Neer plants located at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Hapur, Ahmedabad and Bhopal, with an installed production capacity of approximately 1.09 million litres per day, which caters to approximately 45% of the current demand of packaged drinking water at railway premises and in trains.
To increase the presence in the packaged drinking water market at railway stations, and to meet the growing demand, company is setting up new Rail Neer plants at Sankrail, Jagi Road, Nagpur, Bhusawal, Jabalpur, and Una and further plants at Vijaywada Ranchi, Vishakhapatnam, and Bhubneshwar.
Company has also installed water vending machines (“WVMs”) at railway stations to provide purified, chilled and portable drinking water to railway passengers at an affordable price.
Travel and Tourism:
IRCTC been mandated by Indian Railways to provide tourism and travel related services.
Company has footprints in across all major tourism segments such as hotel bookings, rail, land, cruise and air tour packages and air ticket bookings, and are known as one of India’s leading travel and tourism companies catering to the needs of diverse tourist segments.
Revenue from Business Segments:
- Mr. Mahendra Pratap Mall (Designation: Chairman and Managing Director)
- Ms. Rajni Hasija (Designation: Whole–time Director (Tourism & Marketing)
Peer Group Comparison:
- There are no listed companies in India which are engaged in the same line of business as Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and comparable to company’s scale of operations, hence comparison with industry peers is not applicable.
Video Review of IRCTC IPO:
Positives for the Company:
Authorised by the Ministry of Railways to offer Indian Railway tickets online.
IRCTC is the only entity authorized by Indian Railways to offer railway tickets online through the website www.irctc.co.in and mobile application, “Rail Connect”.
During June 2019, an average of more than 1.40 million passengers reserved online tickets and travelled on Indian Railways every day.
Approximately 71.40% of Indian Railways’ tickets are booked online with an average of more than 0.80 million tickets booked through www.irctc.co.in and “Rail Connect” on a daily basis.
Authorised catering service provider to passengers traveling by Indian Railways.
As a CPSE under the Ministry of Railways, IRCTC is the only entity authorized to manage the catering services on board trains and major static units at railway stations under the Catering Policy 2017.
Exclusively authorized for Manufacturing and supplying packaged drinking water at railway station and trains.
IRCTC is the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water at all railway stations and trains, subject to availability of Rail Neer.
The total average daily demand for packaged drinking water in India at all railway stations and in trains is approximately 1.8 million liters per day, and are able to cater to approximately 45% of the total demand based on the existing production capacities.
Company’s overall production capacity at the ten operational plants of Rail Neer is approximately 0.83 million liters per day and have also installed 1,950 WVMs at 600 railway stations as of June 30, 2019 to provide purified, chilled and potable drinking water to railway passengers at an affordable rate.
Strong Financials & Debt Free Company.
IRCTC has an established track record of delivering strong annual returns to shareholders and the return on equity has exceeded 23% for each fiscal year since Fiscal 2017. IRCTC has been a profitable and debt free company since incorporation.
No Competitors for the Company.
IRCTC is the only entity authorized by the Ministry of Railways to offer catering services on board the train and at majority of the railway stations as well as to offer Indian Railways’ ticket online, Company’s business operation faces little to no competition in these segments.
- IRCTC (Indian Railway Catering and Tourism Corporation) as the name suggest this company is responsible for providing Catering Services on trains & Railway stations,Moreover IRCTC is the only company which is authorised to provide online ticketing services.
- Now if we take into account the number of passengers who travel on Indian Railways on a daily basis is whopping 1.40 million and around 71% of tickets are booked online.
- For those who don’t know i would like to tell you that before Demonetization happened in India, IRCTC used to charge service charge (between Rs. 20 – 40) on each ticket but after Demonetization, government of India decided to withdraw the service charge which was levied on online booking of tickets.
- So the withdrawal of service charge was a big blow to IRCTC as a big chunk of revenue was coming from these charges, but the the good news is that (from 1st September 2019) government has again allowed IRCTC to charge the convenience fee on tickets issued through online booking.
- Since IRCTC has started collecting the fees, going forward we can expect a very big jump in the Net profit of the company.
- With this kind of monopoly, we can just imagine the potential of the company going forward. So every investor should apply with full force.
Financials of the Company:
|(in Crores)||FY 17||FY 18||FY 19|
|Issue Opens on||30th September 2019|
|Issue Closes on:.||3rd October 2019|
|Issue Price||Rs.315 – 320|
|Retail & Employee Discount||Rs.10 per Share|
|Retail Category||Not less than 35%|
|Minimum Lot||40 Shares|
|Minimum Investment||Rs. 12,800|
|Issue Size||Rs. 645 cr ($91 Million)|
|Market Cap||Rs. 5120 cr ($ 721 Million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (OFS)||2,01,60,000|
|Equity Shares Prior to the Issue||16,00,00,000|
|Equity Shares after the issue||16,00,00,000|
|Finalization of Basis of Allotment||On or before 9th October 2019|
|Initiation of Refunds||On or before 10th October 2019|
|Credit of Equity Shares:||On or before 11th October 2019|
|Listing Date:||On or before 14th October 2019|
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
Also Read: Complete List of Upcoming IPOs in India.
|Company Contact Info:|
|Indian Railway Catering and Tourism Corporation Limited
11th Floor, B – 148, Statesman House
New Delhi – 110 001 Delhi, India
Telephone: +91 11 2331 1263 / 64
|IPO Registrar Info:|
|Alankit Assignments Limited
205 – 208, Anarkali Complex
New Delhi 110 055, Delhi, India
Tel: 011 42541954/933/ 022 4348 1293
Investor grievance E-mail: email@example.com