The board of Indian Railway Catering and Tourism Corporation (IRCTC) today recommended the proposal for sub-division or split of companys one (1) equity share of face value of ₹10/- each into five (5) equity shares of face value of ₹2 each, subject to the approval of Ministry of Railways, shareholders and other approvals.
Shares of IRCTC today surged to a new high of ₹2,727, up over 5% on the BSE. IRCTC said the stock split will help enhance liquidity in the capital market, widen shareholder base and make the shares affordable to the small investors.
IRCTC expects the process to be completed within three months from the date of receipt of approval of from Ministry of Railways, Government of India.
The authorised share capital will remain the same at ₹250 crore while post-split the number of shares will increase to 125,00,00,000 ( face value of ₹2-each), from 25,00,00,000.
IRCTC had hit the capital market in October 2019 and its IPO was a huge hit among retail investors. The issue price of the multi-bagger stock was ₹320 per share and investors have been rewarded handsomely. The government holds 67.40% stake in this Railway company.
IRCTC is the only entity authorised by the Indian Railways to provide catering services, online railway tickets and packaged drinking water at railway stations and trains in India.
IRCTC also said in the June quarter its net profit from continuing operations was at ₹82.5 crore against loss of ₹24.6 crore from the year-earlier quarter. Revenue from operations rose to ₹257 crore as compared to ₹156 crore a year ago. Internet ticketing revenue witnessed a sharp rise of over 300% to ₹149 crore, and from the tourism category, the revenue more than doubled to ₹7 crore.
IRCTC shares are up 18% over the past one month with investors betting that the company will benefits as restrictions on movement are lifted.
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