IRCTC share price hits Rs 1,000 mark for first time ahead of India's second private train launch
BusinessToday.In January 16, 2020
Share price of IRCTC hit the four-digit mark for the first time ever a day ahead of launch of India's second private train Ahmedabad-Mumbai Central Tejas Express. The train will be operated by IRCTC. This is the first time IRCTC share hit the Rs 1,000 mark since the Indian Railways stock made its market debut in October last year. IRCTC share price rose up to 2.02% to Rs 1,005 compared to the previous close of Rs 985.50 in afternoon trade today.
0.75 lakh shares of the firm changed hands amounting to turnover of Rs 7.48 crore on BSE. Market cap of the firm rose to Rs 15,920 crore.
On January 13 this year, the state-run company said that Ministry of Railways has given its approval to IRCTC for operating 82901/82902 Ahmedabad-Mumbai Central Tejas Express (6 days a week). The train will see its inaugural run on January 17, 2020 and start its commercial run from January 19, 2020.
IRCTC also operates Delhi-Lucknow Tejas Express. The stock is up nearly three times its IPO issue price.
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