IRCTC fixes record date for stock split. Details here
Premium- IRCTC's board in August recommended the proposal for stock split of equity share of face value of ₹10 each into five equity shares of face value of ₹2 each
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Indian Railway Catering & Tourism Corporation (IRCTC) has announced the record date for its proposed stock split. The company has set 29 October 2021 as its record date for sub-division of equity shares of ₹10 each into five equity shares of ₹2 each. IRCTC shares were trading 0.3% lower at ₹3,784 apiece on the BSE in Friday's early deals.
IRCTC while announcing its quarterly earnings in August had also said that its board approved the proposal for a 1:5 stock split or sub-division of shares. For a split of 1 share at a face value of ₹10 each into 5 equity shares at a face value of ₹2 each.
The stock split will help enhance liquidity in the capital market, widen shareholder base and make the shares affordable to the small investors, it had said. The authorised share capital will remain the same at ₹250 crore while post-split the number of shares will increase to 125,00,00,000 ( face value of ₹2-each), from 25,00,00,000, IRCTC stated.
The state-owned company entered the primary markets by listing in October 2019 and enjoys a strong monopoly. It has 100% market share in rail network. It’s also the only entity authorised to manage catering services on trains and major static units at railway stations.
The Indian Railways' PSU stock has been in a continuous run of giving stellar return to its shareholders since listing in October 2019. Against its IPO issue price, IRCTC share price has shot up more than 10 times from ₹320 per share to ₹3,790 per stock levels in around 2 years.
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For the June quarter, IRCTC's net profit from continuing operations was at ₹82.5 crore whereas its revenue from operations rose to ₹257 crore. Internet ticketing revenue witnessed a sharp rise of over 300% to ₹149 crore, and from the tourism category, the revenue more than doubled to ₹7 crore.
