IRCTC shares march on, IPO allottees gain 170%1 min read . Updated: 16 Jan 2020, 02:12 PM IST
- IRCTC's share made their debut on October 14
- Shares added to gains after a bumper debut
IRCTC shares, which made a bumper debut earlier this month, hit a new high today. Shares surged as much as 11% to a new high of ₹866. In latest trade, IRCTC shares were up 10% to ₹860.50 as compared to a minor gain in benchmark Sensex. IRCTC's share made their debut on October 14 and shares more than doubled as compared to its issue price of ₹320 in one of the best stock market listing in recent times.
As part of the share sale, the government offloaded 20.1 million shares, or a 12.5% stake, in a price band of ₹315-320 apiece in the IPO. IRCTC’s IPO is also the biggest and the most successful among the four companies from the Indian Railways stable that have gone public.
After the bumper debut, many analysts had said that further upside looked capped in the near term but still the stock has marched on.
IRCTC shares have also benefited from a seven-day winning run in Indian markets.
IRCTC's core business is spread across four verticals - railway catering, tourism services, online ticketing and packaged drinking water. It is the only authorized firm by the Indian Railways to provide these services in trains. Catering service is the largest contributor to IRCTC’s top line and the company controls about half the bottled water sold on stations.
Niti Aayog had recently moved a draft document for discussion on private participation in Railways. All stakeholders have time till January 17 to provide a written response to Niti Aayog's proposal.
IRCTC had reported a 14% year-on-year (YoY) growth in net profit at ₹172.16 crore for the half-year period ended September 2019. (With Agency Inputs)