IRCTC share price tanks 8% in 2 sessions as govt offloads 5% stake via OFS; expert explains why it is in a NO GO zone
In chat with Zee Business Managing Editor Anil Singhvi, market expert Siddharth Sedani advised against putting money in the IRCTC stock. Sedani, who is Executive Vice President and Head of Equity Products at Anand Rathi said that investors have not gained much through OFS according to historical data
IRCTC Share Price NSE: Indian Railway Catering and Tourism Corporation Ltd or IRCTC stocks fell over 3 per cent on the NSE on Friday as the ongoing Offer for Sale (OFS) started for retail investors. The stock was trading at Rs 668.45 at 10:50 AM, down 3 per cent from previous close. On Thursday, the counter settled 6 per cent lower at Rs 689.05.
The two-day OFS opened on Thursday for non-retail investors. The government will sell 2.5 per cent additional shares via greenshoe option. The OFS was oversubscribed on Thursday at 3.08 times.
Through the issue, the government will sell 5 per cent shares in IRCTC at a floor price of Rs 680. It currently holds 67.4 per cent stake in the company.
In chat with Zee Business Managing Editor Anil Singhvi, market expert Siddharth Sedani advised against putting money in the IRCTC stock. Sedani, who is Executive Vice President and Head of Equity Products at Anand Rathi said that investors have not gained much through OFS according to historical data.
Fundamentally, the stock looks somewhat slow with weak quarterly results being posted by the company, Sedani opined.
There has been uncertainty in the stock since the time new broke that government may consider having its share in convenience fee charged on booking of tickets. He would advise against going ahhaed with IRCTC counter in terms of current fundamentals.
Also Read: IRCTC share price cracks 5% as govt announces stake sale via OFS: Should you buy?
He was, however, bullish on railway stocks like RVNL.
Around 33,57,815 shares of IRCTC were trading on NSE at this time.
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IRCTC stock has been moving sideways and the current chart structure does not suggest any strong trend, technical analyst Nilesh Jain told Zeebiz Web team on Thursday. The stock has been out of action over the last 5-6 months, he added.
The stock hit its 52-week high of Rs 918.65 on 17 January, 2022 and hit 52-week low of Rs 557 within a span of six months.
It has been in the consolidation phase, Jain noted.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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12:06 PM IST