IRCTC Share Split: IRCTC share price rises on account stock split
IRCTC Share Split Date, IRCTC Share Split News: IRCTC share price has jumped over 8 per cent in the last five trading sessions. The rally is basically driven by the news that the company could announce a share split.
IRCTC share price on the NSE jumped 8.74 per cent or Rs 200.50 since July 29 to close at Rs 2495 on August 4. On the BSE, IRCTC share price jumped 8.64 per cent to trade at Rs 2,491.40.
Earlier on Monday, IRCTC share price hit a 52-week high of Rs 2,535.
Notably, the Board of Directors will meet on August 12. The board is likely to approve the proposal for a stock split of face value of Rs 10 each. IRCTC share split will be subject to the approval of the Ministry of Railways, Government of India and shareholders.
"The board of directors of the Company is scheduled to meet on August 12, 2021 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, Government of India and shareholders," IRCTC said in an exchange filing last week.
A company decides to split the stock to make it more affordable for retail investors and increase liquidity. The face value of the share is split in the case of a share split. The number of shares increases but the company's market cap remains the same. Also, the value of an investor remains the same after the split.
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.
IRCTC shares were listed on the bourses on October 14, 2019.
