Indian Railway Catering and Tourism Corporation Limited (IRCTC) offer for sale received overwhelming support and was oversubscribed 111.95 times. The company had tapped the capital markets with its offer for sale of 2,01,60,000 equity shares in a price band of Rs 315-320 per share. There was a discount of Rs 10 per share for retail and eligible employees. The issue had opened on Monday the 30th of September and closed on Thursday the 3rd of October 2019.

The subscription levels seen in this issue are far greater than that witnessed in other PSU issues. The record was held by Cochin Shipyard which had tapped the markets in August 2017. This issue was subscribed 75.83 times and had received 20.75 lac applications. The earlier record was held by HUDCO which had tapped markets in May 2017 and was subscribed 79 times. This issue had received 20.13 lakh applications.

Subscription has undergone a sea change with UPI and the figure these days is substantially lower than what it used to be earlier. In this comparison of the current 14.64 lac applications received in IRCTC is significantly higher than the 20.75 lac applications received in Cochin on a like to like basis.

The issue was subscribed 108.79 times by QIB’s, 354.52 times by HNI’s, 14.94 times by Retail Investors and 5.82 times by Employees. There were 14.64 lac applications. Based on lots, the issue was subscribed 8.37 times by retail investors. The funding cost has moved up significantly and was about Rs 185 based on 8.5% interest for 7 days.

The best return on PSU shares on listing day has been by Power Grid Corporation which closed at Rs 100.65, against an issue price of Rs 52. This issue listed on 6th October 2007 at Rs 85 and closed at Rs 100.65, a gain of Rs 48.65 or 93.55%. Even though this was over 12 years ago, this remains the best PSU performance to date.