Shares of Indian Railway Catering and Tourism Corporation (IRCTC) more than doubled in debut trade on Monday, skyrocketing 129 per cent against its issue price of Rs 320 per share.
The stock zoomed 127.69 per cent to close at Rs 728.60 on the BSE after listing at Rs 644, reflecting a rally of 101.25 per cent as compared to the issue price in early trade. During the day, it jumped 132.43 per cent to hit a high of Rs 743.80.
On the NSE, it soared 129 per cent to close at Rs 733.
"IRCTC listing proved yet again that a high quality business with a clear runway for growth which leaves a lot on the table for investors is a sure shot success. IRCTC has managed to replicate the success of Avenue Supermart in the primary market where we saw bidders showing appetite for the stock even after the stock doubling on Day-1 of listing," according to S Ranganathan, Head of Research at LKP Securities.
In traded volume, 54.40 lakh shares of the company were traded on the BSE and 4.52 crore shares on the NSE during the day.
IRCTC commands a market valuation of Rs 11,657.60 crore on the BSE.
Rallying over 100 per cent on listing day, IRCTC has surpassed the stellar debut gains of Avenue Supermarts that surged up to 102 per cent against its issue price in 2017.
"A 120 per cent return is something really really good in a single day. It may be best of the returns we have witnessed in listing gains of recent initial public offerings (IPOs)," Mustafa Nadeem, CEO, Epic Research said.
The IPO of IRCTC was a huge hit among investors, as it was subscribed 111.91 times earlier this month in a three-day bidding process.
The Rs 645-crore IPO was in a price range of Rs 315-320 per share.
IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
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