Indian Railway Catering and Tourism Corporation aka IRCTC announced a stock split to 1:5 ratio. The share face value to be reduced to ₹2 from ₹10 after the sub division of IRCTC share. The company made their announcement of the stock split with their quarterly results. The stock split is subject to approval from the Ministry of Railways and the share holders.
"The board of IRCTC recommended the proposal for sub-division or split of company's one equity share of face value of ₹ 10 each into five equity shares of face value of ₹ 2 each," IRCTC said in a regulatory filing to the stock exchanges.
As per the current share price after the stock split the share price estimated to come around ₹500 to ₹550 from the existing level of ₹2660. This won't affect the company valuations but the price will attract small investors to invest in the company. The small price will create extra volumes in the stock trading. After the sub-division of the IRCTC share we might see some more liquidity.
The IRCTC IPO made an all-time high of ₹ 2,727.95 on the indices on August 12 after the quarterly results and the stock split announcement. The IRCTC share increased more tha 700% against their IPO price of ₹320.
The company reported a net profit of ₹82.52 crore which was loss of ₹24.60 in the same period YOY. The revenues from the operations up by 85% to ₹243 crores. Check the IRCTC share price here.
IRCTC is a wholly-owned subsidiary of the Indian Railways. The company provides e-ticketing, tourism, and catering services for passengers in India. The government holds 67% of the stack in the company and the company listed in 2019.