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Business News/ Markets / Stock Markets/  Angel Broking recommends to book gains in IRCTC OFS
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Angel Broking recommends to book gains in IRCTC OFS

The brokerage remains positive on IRCTC's long term prospects.

IRCTC is the only entity authorized by the Indian Railways to provide catering services to railways,Premium
IRCTC is the only entity authorized by the Indian Railways to provide catering services to railways,

Analysts at Angel Broking recommend short term investors to book profit in IRCTC OFS. Retail investors get shares at cutoff price or bid price whichever is higher on Wednesday in their d-mate account. Total OFS size was 20% of paid up share capital with cut off price of 1377.55. After the OFS promoter holding now at 67.4% and public holding at 32.6%. After the OFS free float in stock has increased significantly as 20% of paid up share capital has been off load in the market.

"We recommend short term investors to book profit of 4.5% at CMP of 1,433 and long term investors can hold stock as we remain positive on the long term prospects of the company given the monopolistic nature of the business and strong growth expected post FY2021," says Yash Gupta Equity Research Associate, Angel Broking.

In an earlier report, Angel Broking had expected IRCTC share price to come down after the allotment of shares of OFS i.e. 16th December 2020. IRCTC share price fell from 1,478 as on December 14 , the day when OFS ended to current market price of 1,430.

The two-day IRCTC OFS had began on Thursday, with the first day, i.e., December 10 reserved for non-retail investors and the second day for retail investors.

On First day of IRCTC OFS it got oversubscribed by 1.98x times from the non-retail category. Now the company has fixed the cutoff rate of 1377.55 after the first day of bidding. Total OFS is 20% of paid up equity share capital.

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Published: 17 Dec 2020, 02:24 PM IST
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