IRCTC

Incorporated in 1999, state-owned Indian Railway Catering and Tourism Corporation Limited
(IRCTC) is a wholly-owned subsidiary of Indian Railways. IRCTC handles tourism, catering, online
ticket booking services and provides packaged drinking water in trains and at railway stations in the
country. It was conferred as a Mini-Ratna or Category-I Public Sector Enterprise by the Indian
Government in 2008.UPI or ASBA Applications
As per the RHP Page No 308 this offer is under Phase II of UPI.

IPO UPI Phase II Definition: This phase has commenced with effect from July 1, 2019 and will
continue for a period of three months or floating of five main board public issues, whichever is later.

Under this phase, submission of the ASBA Form by a Retail Individual Bidder through intermediaries
to SCSBs for blocking of funds has been discontinued and has been replaced by the UPI Mechanism.
However, the time duration from public issue closure to listing continues to be six Working Days
during this phase.The initial public offer (IPO) by state-run IRCTC received bids for 81 per cent on
Day 1 of the bidding process.

On Monday, the issue received bids for 1,63,94,040 shares against the issue size of 2,01,60,000
shares.

IRCTC has set IPO has a price band of Rs 315-320 per share. At the upper price band, the stock is
available at P/E multiple of 18.8 times to its FY19 EPS of Rs 17 transactions per month in the three
months ended June 30. At present, it operates in four business segments, namely, internet ticketing,
catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.

The inclusion of a convenience fee on railway tickets, setting up of 10 water plants in the next two
years and the recent tax reduction of corporate tax bodes well for EPS growth, said ICICIdirect in a
note "Coupled with healthy dividend payout (45 per cent in FY19) and RoE (26.1 per cent), we
recommend subscribe rating to the issue at the offer price. Further, at the IPO price band, the stock is
available at a price to earnings multiple of 10 times FY21E EPS, which we believe looks attractive
from the perspective of future earnings growth,” the brokerage said.

“IPO looks conservatively priced at a PER (price earnings ratio) of around 19x based on FY19
earnings.

PSE
COAL INDIA
The government will fetch Rs 15,100 crore by selling 631.6 million shares, or 10 per cent stake, at Rs
245 per share. It will offer retail investors a discount of five per cent.

The company is expected to list on stock exchanges on November 4, a day before Diwali. CIL’s IPO,
which closed on October 21, was subscribed 15.17 times, and mopped up Rs 2.35 lakh crore.
Marketmen said the stock would open at a fairly good premium. “CIL deserves to trade at a premium
to global coal peers, given much lower volatility in earnings and a large headroom to raise prices in a
supply-deficit environment,” brokerage house CLSA said.

CIL is one of the largest companies in the world, based on coal reserves of 64,786 million tonnes in
April. “Going by the significant asset size, the quality and the life of the reserves and the dominance
in domestic market, we believe CIL has very good prospects in the long term,” Elara Securities
analyst Ravindra Deshpande said.

Analysts said the huge response to the issue would boost the government’s disinvestment plans and
speed up the upcoming stake-sale projects.