IRCTC shares end upward rally, decline 2% over profit-booking

Latest News

General Manager’s Safety Award for 10 Staff of Central Railway

View All >>

1 Rail News

क्षेत्रीय हिंदी प्रतियोगिता 2023 संपन्न

Central Railway Revolutionizes LHB Power Car Testing with Static Water Load Testing Units in a First of its kind Innovation
Shri Ram Karan Yadav takes over as General Manager, Central Railway
भारतीय रेल ने नवंबर 2023 तक 1015.6 एमटी माल लदान का लक्ष्य हासिल किया
जबलपुर-हजरत निजामुद्दीन एक्सप्रेस सहित 10 ट्रेन निरस्त, कामायनी एक्सप्रेस परिवर्तित मार्ग से चलेगी
रेलवे की बड़ी सौगात! अब इन स्‍टेशनों से पटना के लिए मिलेगी सीधी ट्रेन, जानें शेड्यूल
किसानों के बाद अब पूर्व सैनिकों ने घेरा रेलवे ट्रैक, One Rank One Pension की मांग को लेकर शुरू किया प्रदर्शन
रेलवे स्टेशन के फुट ओवरब्रिज पर ले सकेंगे स्ट्रीट फूड का आनंद

view all>>

2 Railway Employee

General Manager’s Safety Award for 10 Staff of Central Railway

view all>>

3 Always Important

जानिए पटरियों के साइड में क्यों लिखे होते हैं नंबर?

view all>>

IRCTC shares end upward rally, decline 2% over profit-booking

October 16, 2019, 2:53 PM

After two sessions of positive momentum, the overvalued share-price of Indian Railway Catering and Tourism Corporation (IRCTC) finally gave up some gains on the back of profit-booking by investors and traded in the red territory for the day.

The IRCTC stock gained momentum in the initial hours and rose 1% to the intraday high of Rs 720.55 against the last close of Rs 713.10. Although, later the stock of Rs 10 face value lost ground and traded 2.03% lower at day’s low of Rs 698.60 on the BSE.

As per the market depth data available on the BSE, there is 91% selling against 9% bidders buying the stock at this value. Overall 2.35 lakh and 23.61 lakh shares trade on the counter, BSE and NSE, respectively. The newly-listed company’s market capitalisation on Wednesday stood at Rs 11,280 crore, lower by Rs 328 crore than its first-day closing value of Rs 11,658 crore.

Many rating agencies had declared the stock overvalued as it gave more than 100% profit to its shareholders on its listing day itself and expected a correction in its share value.

Analysts believe the surge in the company’s share value is fundamentally backed by the mismatch between too much demand by investors and relatively less supply, which has been the case since its IPO release. As per market participants, the company’s monopoly in ‘catering, tourism and online ticketing’ sector, coupled with its sound financials, created an excess demand by traders.

On its debut day, the IRCTC’s shares had risen 127% against the issue price of Rs 324 on the BSE and 130% on the NSE, by the closing bell. The IRCTC IPO was subscribed nearly 112 times on the last day of the book-building process on October 3, making it the most successful IPO by a public sector enterprise. It was also the most successful IPO in over 20 months.

Source – BT

This entry was posted in 2 Railway Employee, 4 Railway Circulars / Rule, Railway Employee