Mumbai, Sep 25 (IANS): State-run IRCTC's initial public offering (IPO) will open on September 30 with a price band of Rs 315-320 per share to raise around Rs 645 crore.

The issue comprised an offer for sale of 2,01,60,000 shares of Rs 10 face value, the company said in a statement and added, of the total, 1,60,000 equity shares were reserved for employees.

"The company has offered Rs 10 discount per share on the offer price for the retail category and to eligible employees," it said. The company would not receive any proceeds from the IPO and "all proceeds shall go to the shareholder", IRCTC said.

The IPO will close on October 3. The Indian Railway Catering and Tourism Corporation (IRCTC) is a subsidiary of the Indian Railways.

An IPO is a financial instrument through which an unlisted company offers shares to the public first time. The funds raised are used for various purposes, like working capital, debt repayment and acquisitions.