IRCTC share price has gained 55% in last ten sessions on rising investor interest in the stock of Indian Railways’ subsidiary. Share price of IRCTC which stood at Rs 1,002 on January 24 this year hit an intra-day high of Rs 1,562 in trade today.
IRCTC share price gained up to Rs 3.47% to Rs 1,562 to hit an all-time high in trade today.
The state-run firm will announce its third quarter results on February 12. This will be the second earnings announcement by IRCTC after its listing on Indian bourses on October 14, 2019. IRCTC reported a 14 per cent year-on-year (YoY) rise in net profit at Rs 172.16 crore for the half-year period ended September 30, 2019, helped by sharp rise in revenue from e-ticketing segment.
IRCTC will soon start its third private train, Indore-Varanasi Tejas Express. In Budget 2020 proposals, Finance Minister Nirmala Sitharaman announced that more Tejas-like trains will be launched in future. Indore-Varanasi Tejas Express will be the first Tejas Express which will run overnight.
In 2019, IRCTC launched its first Tejas Express which runs on Lucknow-Delhi route, followed by another Tejas Express on Mumbai-Ahmedabad route. The firm follows dynamic fare scheme for both trains.
IRCTC stock has risen nearly five times its IPO issue price.
The Indian Railway firm made its stock market debut on October 14 with IRCTC share listing at Rs 644 on BSE and Rs 626 on NSE against the issue price of Rs 320.
Against the listing price of Rs 644, the IRCTC stock made an intraday high of Rs 743.80 on both the bourses, with 15.50% intraday gain clocked on the BSE, and 18.80% hike against the listing price on NSE. Bids were invited in a price band of Rs 315 to Rs 320 during the IRCTC IPO which was held from September 30 to October 3.
The allotment of shares for the initial public offer (IPO) of IRCTC was held from October 9 to October 10. The IPO received bids for 225.39 crore shares compared to the issue size of 2.01 crore shares. The public issue was a part of the government’s divestment programme for the financial year 2019-20.
The government which owned 100% in IRCTC sold 12.6% stake in the firm. After the IPO, government’s stake in the firm fell to 87.4%. IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.
By Aseem Thapliyal