IRCTC gains 7% in 2 days as Railways to operate additional special trains

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) gained 3 per cent to Rs 1,460 on the BSE on Tuesday, rising 7 per cent in the past two trading days on operation of additional special trains with effect from Saturday, September 12.

In the first six trading days of the current month, the stock of the government-owned travel support services company has outperformed the market by surging 9 per cent from the level of Rs 1,343. In comparison, the S&P BSE Sensex has risen 0.10 per cent. 

The stock has recovered 88 per cent from its low of Rs 775, touched on March 26. Its market price more than halved from the all-time high level of Rs 1,995, hit on February 25, after cancellation of all Indian Railways passenger train services as well as all passenger ticketing due to the novel Coronavirus outbreak.

Vinod Kumar Yadav, the chairman of Railway Board, announced on Saturday that the Indian Railways will run 80 new special trains from September 12. The reservation for the same will begin from September 10.

“These services shall be in addition to the Shramik specials and the special trains, which are already under operation. The composition of these trains would be same as of existing regular services. Stoppages shall be restricted in view of the suggestions of State Governments. These will be fully reserved trains,” Ministry of Railways said. CLICK HERE FOR RELEASE

IRCTC is the only entity authorised by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. It has a dominant position in online rail bookings/packaged drinking water with around 73 per cent/45 per cent market share, respectively.

Meanwhile, as per media reports, the government is planning to sell 15-20 per cent in IRCTC via offer for sale (OFS).  The government, through the President of India, holds 87.40 per cent stake in IRCTC.

At 10:49 am, IRCTC was trading 2 per cent higher at Rs 1,442 on the BSE, against a 0.64 per cent rise in the S&P BSE Sensex. A combined 2.4 million equity shares had changed hands on the counter on the NSE and BSE.