Shares of Indian Railway Catering and Tourism Corporation (IRCTC) continued their bull run and hit new all-time highs during the morning trade on Tuesday.
The stock surged past the Rs 6,000 mark for the first time ever and hit a record intraday high of Rs 6,375.45 on the BSE, while on the National Stock Exchange (NSE) it rose to an all-time high of Rs 6,375.15. The market captitalisation too hit the Rs 1 lakh crore mark in the process.
At 11:42 am, the stock was trading at Rs 6248.00, up 6.31 per cent from its previous close on the BSE, while on NSE it was up 6.53 per cent at Rs 6,261.35. The market cap stood at Rs 1,00,285.60 crore, data available on the BSE showed.
The stock of the government-owned travel support services company has surged 343.59 per cent so far in 2021 on the BSE.
The IRCTC stock has been on the rise post the easing of travel restrictions across states following the second wave of the Covid-19 pandemic. It has also surged specifically after the announcement of the stock split plan in August. On August 12, the board of 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 refers to the splitting the face value of the shares of a company, wherein the number of shares of the said company increases but its market capitalisation remains the same. All the existing shares split, but the underlying value remains the same.
Generally, a stock split is done to make it more affordable for small retail investors and increase its liquidity. As the number of shares increases during a stock split, the price per share goes down.