Indian Railway Catering and Tourism Corporation (IRCTC) share price rose in early trade after ministry of railways marginally raised basic passenger fare for various classes of Indian Railways with effect from today. The fare hike is likely to bring in another Rs 2,300 crore revenue for the national transporter. IRCTC share price rose 1.91% or 17 points to Rs 951.85 compared to previous close of Rs 934 on BSE. The share ended 1.07% or 10 points higher at Rs 944 on BSE.
The fare for second class ordinary, sleeper class ordinary and first class ordinary tickets have been increased by 1 paisa per passenger kilometre. For second class, sleeper class or first class tickets in non-AC mail or express trains, fare has been increased by 2 paise per passenger kilometre.
Ticket prices for AC chair car, AC 3-tier/3E, AC 2-tier and AC First Class/EC/EA will increase by 4 paise per passenger kilometre. This includes premium trains such as Rajdhani, Shatabdi and Duronto. Fares for suburban (single journey fare) and season tickets (suburban and non-suburban) have been kept unchanged. The Indian Railway firm made its market debut on October 14 with IRCTC share listing at Rs 644 on BSE and Rs 626 on NSE against the issue price of Rs 320.
Against the listing price of Rs 644, the IRCTC stock made an intraday high of Rs 743.80 on both the bourses, with 15.50% intraday gain clocked on the BSE, and 18.80% hike against the listing price on NSE. Bids were invited in a price band of Rs 315 to Rs 320 during the IRCTC IPO which was held from September 30 to October 3.
The allotment of shares for the initial public offer (IPO) of IRCTC was held from October 9 to October 10. The IPO received bids for 225.39 crore shares compared to the issue size of 2.01 crore shares. The public issue was a part of the government's divestment programme for the financial year 2019-20.
The government which owned 100% in IRCTC sold 12.6% stake in the firm. After the IPO, government's stake in the firm fell to 87.4%. The issue involves sale of 2.01 crore equity shares of face value of Rs 10 each in a price band of Rs 315 to Rs 320. The attractiveness of the firm's business can be gauged from the fact that IRCTC enjoys monopoly across its area of operations and is backed by the government.
IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.
By Aseem Thapliyal