Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has become the latest to join the club of ₹1-lakh-crore market capitalisation (m-cap) on Tuesday. IRCTC stock hit a record intraday high of Rs 6,375.45 on October 19. This was the first time IRCTC stock surged past Rs 6,000-mark. At 1142 hours, IRCTC stock was trading at Rs 6,248.00, up 6.31 per cent from its previous close on the BSE. On NSE, IRCTC share was up 6.53 per cent at Rs 6,261.35. The market cap of IRCTC stood at Rs 1,00,285.60 crore, data available on the BSE showed.
The government-owned travel support services company has added Rs 30,000 crore market cap in just nine months as IRCTC share continued its bull run. Earlier, PSU stocks such as State Bank of India, Coal India, NMDC Ltd, Indian Oil Corp. Ltd, Power Grid Corp. Ltd, SBI Life Insurance, Bharat Petroleum Corp. and SBI Cards have achieved the milestone of hitting Rs 1-lakh-crore market capitalisation.
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.
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