Shares of Indian Railway Catering and Tourism Corporation (IRCTC) rose 15 per cent to Rs 949.65 in intra-day trade on BSE on Thursday after the stock went through an ex-stock split (sub-division of equity shares). IRCTC shares hit a record high of Rs 1,279 (adjusted for stock splits) on October 19, 2021.
IRCTC got listed on the stock exchanges on October 14, 2019 and its issue price was Rs.320 per share. Since then, IRCTC’s stock has gained 1,737 per cent or 18 times. IRCTC’s stock has jumped over 300 per cent so far this year. Analysts attributed more than one reason behind the continuous rally of the PSU stock. The vaccination drive is gaining momentum and with new Covid-19 cases under control, the economy is slowly unlocking. IRCTC has also started announcing special trains ahead of the festive season. The stock rally of IRCTC on 19 October saw positive signs and festive cheer in the market.
IRCTC’s stake has been rising ever since the company decided to split the stock. On 12 August, the e-ticketing and catering arm of Indian Railways announced the splitting of one equity share of face value of Rs 10 into five equity shares of face value of Rs 2. More affordable stocks for small retail investors and increased liquidity. While there will be no change in the share capital, the number of shares will increase by 5 times. IRCTC stock split helped in increasing the liquidity in the capital market and widening the shareholder base. The company reported a profit of Rs 82.52 crore for the quarter ended June, as against a loss of Rs 24.60 crore in the same period a year ago.
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