IRCTC crosses ₹1 lakh crore in market cap for the first time as investors adore its monopoly
- Shares of Indian Railway Catering and Tourism Corporation have surged as much as 30% in just the last five days paving the way for the company to cross the ₹1 trillion-mark.
- The railway company’s stock has grown a whopping 334% in 2021 so far.
- Among other triggers fuelling the stocks, the latest one is the company starting many special tourist trains for the festive season.
The railway company added ₹30,000 crore in market cap in just nine days as its shares continued to rally. The share price has skyrocketed 712% since it got listed in October 2019.
IRCTC has become one of investors’ favourite stocks because of its monopoly in rail ticket booking.
Currently, one of the major triggers fuelling the rally in the stock is the company starting many special tourist trains for the festive season.
The stock was trading at ₹6,343 per share at 9:56 a.m., on Tuesday. The market cap of the company has crossed ₹1 trillion and is currently at ₹1.01 trillion. However, later in the day shares of the company suddenly corrected 15%.
Apart from this, investors are awaiting development on the company’s plan to split the stock. On August 12, IRCTC approved a stock split in the ratio of 1:5 to enhance the liquidity in the capital market, widen the shareholder base and make the shares affordable to small investors. A stock split is generally done to make the stock more affordable for the small retail investors and increase liquidity.
AdvertisementMoreover, its expansion plan in the hospitality sector has also impressed investors over the period of time.
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