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IRCTC's market capitalisation tops 1 trillion: All you need to know
It is the ninth public sector entity with an m-cap of more than ₹1 trillion.
The Indian Railway Catering and Tourism Corporation (IRCTC) on Tuesday saw its share price hit a new high of ₹6287.95, rising by as much as 7.1 per cent. At 9:20am, it was trading at 6283.50 on the Bombay Stock Exchange (BSE), up 7 per cent. In the process, IRCTC’s market capitalisation (m-cap) was recorded at ₹1.01 trillion, making it the ninth public sector entity to enter the ₹1 trillion (1 lakh crore) m-cap club.
Market capitalisation is defined as the total value of a firm fixed by the market. It is calculated by multiplying the current market price with the total number of shares outstanding.
Here’s all you need to know:
(1.) IRCTC launched its initial public offering (IPO) on September 30, 2019. It was worth ₹640 crore, with a price band of ₹315-320 per share.
(2.) On October 14 that year, IRCTC was listed on stock exchanges. Since then, its shares have surged more than 18 folds, or 1.737 per cent. This year, it has made advances at worth 308.1 per cent. In October 2021, its stocks have surged 58 per cent, according to Livemint.
(3.) According to experts this was driven largely by IRCTC’s strong performance in the June quarter, when the devastating second wave of Covid-19 began to recede. The number of tickets booked per day during this quarter stood at 63.7 million, and improved further in July and August.
(4.) The numbers are expected to improve even more due to the unlocking of the economy and the ongoing festive season, for which Railways has increased the number of trains.
(5.) Before IRCTC, the eight public sector entities to top the 1 trillion m-cap mark were State Bank of India (SBI), Coal India, National Mineral Development Corporation (NMDC), Indian Oil Corporation (IOC), Power Grid, SBI Life Insurance, Bharat Petroleum and SBI Cards.
(6.) Overall, it is 57th on the list of such stocks, surpassing ICICI Prudential Life Insurance and IndusInd Bank.
About IRCTC:
Established on September 27, 1999 as a public sector undertaking (PSU), the Indian Railway Catering and Tourism Corporation, was, till 2019, completely owned by the Government of India through the Ministry of Railways. However, the Union government continues to be majority shareowner. IRCTC provides services such as online ticketing, catering and tourism for Indian Railways.
