Earlier this month, IRCTC share made a bumper debut, hit a new high today. Shares surged as much as 11 per cent to a new high of Rs 866. In the latest trade, IRCTC shares were up 10 per cent to Rs 860.50 as compared to a minor gain in benchmark Sensex.
IRCTC’s share made their debut on October 14 and shares more than doubled as compared to its issue price of Rs 320 in one of the best stock market listing in recent times. As part of the share sale, the government offloaded 20.1 million shares, or a 12.5 per cent stake, in a price band of Rs 315-320 apiece in the IPO. The biggest and most successful among the four companies from Indian Railways stable that have gone public is IRCTC’s IPO.
After the bumper debut, many analysts had said that further upside looked capped in the near term but still the stock has marched on. IRCTC shares have also benefited from a seven-day winning run in Indian markets. IRCTC’s core business is spread across four verticals railway catering, tourism services, online ticketing and packaged drinking water. Indian Railway also authorized to provide these services in trains. The largest contributor for IRCTC’s top line is catering service and the company controls about half the bottled water sold on stations.