Indian Railway Catering and Tourism Corporation (IRCTC) joined the elite club of companies commanding Rs 1-trillion market capitalization (m-cap) on the BSE, after its share price hit a new high of Rs 6,332.25 in the intra-day trade on Tuesday. The shares rallied nearly 8 per cent today and have zoomed 33 per cent in the past five trading days.
At 09:32 am, IRCTC, which is engaged in the travel support services business, was trading 6.9 per cent higher at Rs 6,283.50, with a market-cap of Rs 100,612 crore, BSE data shows. In comparison, the S&P BSE Sensex was 0.59 per cent higher at 62,131 points. Currently, IRCTC stands at 57th position in the overall m-cap ranking. With today’s feat, the company has surpassed m-cap of IndusInd Bank and ICICI Prudential Life Insurance Company.
In the past six months, the stock has zoomed 293 per cent from a level of Rs 1,612, as compared to a 30 per cent rise in the S&P BSE Sensex. Moreover, since August, the market price of IRCTC has more than doubled or has risen 172 per cent after the company, on July 30, 2021, announced a stock split plan. Further, the board of IRCTC approved a stock split in the ratio of 1:5 on August 12.
IRCTC has fixed October 29, 2021, as the record date to ascertain the name of shareholders entitled for subdivision/split of equity shares of Rs 10 each into five (5) equity shares of the face value of Rs 2 each. The scrip will turn ex-date for stock split on October 28, 2021.
A stock split is generally done to make the stock more affordable for small retail investors and increase liquidity. It refers to splitting the face value of the shares of companies, wherein the number of shares of the company increases but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.
IRCTC is the only entity authorised by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. It has a dominant position in online rail bookings and packaged drinking water with around 73 per cent and 45 per cent market share, respectively.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
