IRCTC BONANZA for small investors - Company splits shares to increase AFFORDABILITY, liquidity; share hits new life high, ends up 4.6% on BSE
The government-owned companys board today approved the proposal for a split of 1 share at a face value of Rs 10 each into 5 equity shares at a face value of Rs 2 each.
Good NEWS for small investors - If you have been eyeing IRCTC stock but have been unable to buy it because of the share price, you could soon be able to do it. The government-owned company's board today approved the proposal for a split of 1 share at a face value of Rs 10 each into 5 equity shares at a face value of Rs 2 each. The announcement was made by IRCTC in its filing to exchanges. The company’s board has approved a stock split in the ratio of 1:5 along with June quarter numbers for fiscal 2021-22.
However, this stock split is subject to the approval of the Ministry of Railways. It expects this to happen within 3 months from the date of receipt of approval from the railway ministry.
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IRCTC also announced its Q1FY22 results where the company has reported a profit of Rs 82.5 crore in the June quarter as compared to a loss of Rs 24 crore in the year-ago period. This was down on a sequential basis as IRCTC's PAT for Q4FY21 stood at Rs 103.7 crore on a sequential basis. While the revenue from operations jumped over 85 per cent to Rs 243.36 crore in Q1FY22 from Rs 131.33 crore Q1FY21.
The news triggered the price movement in the IRCTC share price as the stocks were up by over 6 per cent, hit a new life high of Rs 2727.95 per share on the BSE on an intraday basis.
The counter was trading almost muted around Rs 2600 per share levels at 2:15 pm. IRCTC stock ended at 2689.85, up by Rs 118 or 4.6 per cent from the last closing price on the BSE.
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