Indian Railway Catering and Tourism Corporation (IRCTC) has announced a record date for its proposed stock split. The company has fixed its record date for sub-division of equity shares as 29 October 2021 ₹10 each in five equity shares ₹2 each.
IRCTC, while announcing its quarterly earnings in August, had also said that its board has approved the proposal for 1:5 share split or sub-division of shares. For split of 1 share at face value ₹5 equity shares of Rs.10 each at face value of Rs. ₹2 each.
The stock split will help increase liquidity in the capital market, widen the shareholder base and make the shares affordable for small investors. The authorized share capital will remain the same ₹250 crores whereas the number of shares after split will increase to 125,00,00,000 (face value) ₹2-each), from Rs.25,00,00,000, IRCTC said.
The state-owned company entered the primary markets by listing in October 2019 and enjoys a strong monopoly. It has 100% market share in the rail network. It is the only unit authorized to manage catering services in trains and major stationary units at railway stations.
Indian Railways’ PSU stock has been in a constant race to deliver great returns to its shareholders since its listing in October 2019. Compared to its IPO issue price, the share price of IRCTC has increased more than 10 times since last year. ₹320 per share to ₹3,797 per stock level in about 2 years.
IRCTC’s net profit from continuing operations for the June quarter was ₹82.5 crores while its revenue from operations increased ₹257 crores. Internet ticketing revenue sees sharp growth of over 300% ₹149 crores, and from the tourism category, the revenue more than doubled ₹7 crores.
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