IRCTC share price hits all-time high ahead of earnings announcement, inches closer to Rs 1,000 mark

IRCTC share price hit its all-time high today as the Indian Railways-owned firm was set to announce its half-yearly earnings for the first time after its blockbuster listing in October this year. IRCTC share price rose 5.20% to Rs 981.35, a fresh high for the PSU stock, against the previous close of Rs 932.80 on BSE. Its market capitalisation rose to Rs 15,575 crore on BSE.

2.61 lakh shares changed hands amounting to turnover of Rs 25.35 crore on BSE. Earlier, IRCTC share opened 1.84% higher at Rs 950 on BSE. On NSE, the Railways firm stock rose 5.14% to Rs 980.90 compared to previous close of Rs 932.90.

The stock opened at Rs 955 on BSE. The stock has been rising since it was listed on BSE and NSE on October 14. The Indian Railway firm made its market debut with IRCTC share listing at Rs 644 on BSE and Rs 626 on NSE against the issue price of Rs 320.

Also read: India's first private train IRCTC Lucknow-Delhi Tejas posts Rs 70 lakh profit in three weeks

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 BSE, and 18.80% hike against the listing price on NSE. IRCTC stock has risen 52% above its listing price till date.

On NSE, the stock has given 56.69 percent returns compared to its listing price of Rs 626. IRCTC share listing has become a dream come true for investors of the PSU initial public offer (IPO).

Those who were allotted the stock on October 9 and October 10 have clocked gains of 206% on NSE and BSE.

The stock has witnessed huge investor interest since it was listed on bourses.

It closed above Rs 900 for first time on October 23 at Rs 900.4. Today, the stock is likely to hit the Rs 1,000 mark with announcement of earnings for quarter ended September 2019.

Also read: Indian Railways runs 2,500 additional services to handle festive rush

IRCTC initial public offer (IPO) which was open for subscription between September 30 and October 3, saw bids of nearly 112 times on the last day of the initial public offer. The issue involved the sale of 2.01 crore equity shares of the face value of Rs 10 each in a price band of Rs 315 to Rs 320. 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.

Also read: IRCTC gives Rs 250 each to passengers after Tejas Express gets delayed

By Aseem Thapliyal