INSUBCONTINENT EXCLUSIVE:
IRCTC saw net profit of Rs 82 crore for June quarter versus loss of Rs 24 crore in year-ago periodIRCTC, the tourist and catering arm of
Indian Railways, has actually revealed a stock-split in the ratio of 1:5 to assist enhance liquidity in the capital market, widen
shareholder base and make the shares inexpensive to small financiers
One IRCTC share with a stated value of Rs 10 will be split into 5 shares of face value of Rs 2 each
The board of IRCTC today recommended the proposition for sub-division or split of company's one equity share of stated value of Rs 10 each
into five equity shares of face value of Rs 2 each, IRCTC said in a regulatory filing to the stock market
The choice on the stock-split undergoes the approval of Ministry of Railways, investors and other approvals
The procedure is likely to be completed within three months from the date of receipt of approval from the Ministry of Railways, IRCTC said.A
company's authorised share capital stays the same in a stock-split, however the market rate decreases in proportion to the split ratio and
this results in a greater number of shares offered in the secondary market
The reduction of the market rate and boost in liquidity makes the shares cost effective to retail buyers.Meanwhile, IRCTC revealed
turn-around outcomes for the June quarter, reporting a net earnings of Rs 82 crore for the quarter as against a loss of Rs 24 crore in the
year-ago period.IRCTC shares rose to a brand-new high of Rs 2,727 on the BSE post the share split statement
At 3:10 pm, the shares were trading at Rs 2688, up 4.5 percent on the BSE.IRCTC offers catering services, online train tickets and packaged
drinking water at train stations and trains throughout India
The federal government holds 67.40 per cent stake in the company.
