IRCTC spurts as board to consider stock-split proposal

Indian Railway Catering and Tourism Corporation (IRCTC) jumped 5.6% to Rs 2,460 after the company announced that its board will meet on 12 August to discuss the proposal for sub-division of company's equity shares.

IRCTC in an exchange filing said, A meeting of the board of directors of the company is scheduled to be held on Thursday, 12 August, to recommend the proposal for sub- division of company's equity shares of face value of Rs 10 each and matters related thereto, subject to the approval of Ministry of Railways and shareholders.

The board will also consider and approve the unaudited financial results of the company for the quarter ended on 30 June 2021 on the same day.

Shares of IRCTC listed on the bourses on 14 October 2019. The stock debuted at Rs 644, a premium of 101.25% to the initial public offer (IPO) price of Rs 320 per share. The initial public offer (IPO) of IRCTC (Indian Railway Catering and Tourism Corporation) received bids for 225.69 crore crore shares as against 2.01 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 111.95 times.

IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. As of 30 June 2021, the Government of India held 67.4% stake in the company.

The company posted a 23.2% decline in net profit to Rs 103.78 crore on 41.15% decline in revenue from operations to Rs 338.78 crore in Q4 FY21 over Q4 FY20.

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