Mumbai, Sep 28 (TIWN) Come Monday, Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of the Indian Railways, will hit the market with the initial public offering (IPO), likely to be the largest of the IPOs issued by the IR subsidieries, at Rs 635-645 crore.

 The total share dilution amounts to 12.60 per cent of IRCTC’s paid-up equity share capital.  IRCTC, a profit making entity of Indian Railways, reported Rs 272.6 crore net profit in FY19 and Rs 220.62 crore in FY18. The company’s revenue grew to Rs 1,867.88 crore in FY19 from Rs 1,470.46 crore in FY18.  Three other Indian Railways subsidiaries to have come out with IPOs are: Rail Vikas Nigam Limited (RVNL), RITES (Rail India Technical and Economic Service) and IRCON (Indian Railway Construction Company Limited). 

The size of RVNL’s public offering was Rs 477.11 crore, IRCON Rs 466.93 crore and RITES Rs 460.44 crore.  An IPO is a financial instrument through which an unlisted company offers shares to the public. The funds raised are used for various purposes, like working capital, debt repayment and acquisitions.