Indian Railway Catering and Tourism Corporation (IRCTC) shares surged 15 per cent to Rs 949.65 on the BSE in intra-day trade on Thursday after the scrip had turned ex-stock split (sub-division of equity shares). IRCTC shares had hit a record high of Rs 1,279 (adjusted to stock split) on October 19, 2021.
IRCTC got listed on the bourses on October 14, 2019 and its issue price was Rs 320 a share. Since then, IRCTC stock jumped 1,737 per cent or 18-fold. IRCTC share jumped over 300 per cent so far this year. Analysts pointed out more than one reasons behind the continuous rally of this PSU stock. With vaccination drive gaining momentum and new Covid-19 cases remain under control, the economy is gradually unlocking. IRCTC has also started announcing special trains ahead of the festive season. Positive cue in the market and festive cheers fueled the IRCTC stock rally on October 19.
The share of IRCTC has been on a rise after the company decided to split the stock. On August 12, the e-ticketing and catering arm of the Indian Railways announced a split of one equity share of the face value of Rs 10 into five equity shares of the face value of Rs 2. A stock split is usually done to make the stock more affordable for the small retail investors and increase liquidity. While there will be no change in the share capital, the number of shares will increase 5 times. IRCTC stock split helped to enhance the liquidity in the capital market and widen the shareholder base. The company also reported a profit of Rs 82.52 crore for the quarter ended June, compared to a loss of Rs 24.60 crore in the corresponding period year-ago.