IRCTC: Indian Railway Catering and Tourism Corporation
To comply with DIPAM and Fin Min requirements for Central Public Sector Enterprises, a stock split was done.
The IRCTC claims that the measure will increase capital market liquidity and broaden the shareholder base, making shares more affordable to small investors.
On Thursday, IRCTC stock finished at a new high of Rs 2,694, up 4.7 percent or Rs 121.75 on the NSE.
IRCTC (Indian Railway Catering and Tourism Corporation) suggested a stock split on Thursday. The board proposed a 1:5 stock split to comply with the Department of Investment & Public Asset Management (DIPAM) and Ministry of Finance guidelines on capital restructuring of public sector businesses.
IRCTC said in a statement that the stock split, which is subject to Ministry of Railways clearance, was done to increase liquidity in the capital market and to widen the shareholder base to make shares more affordable to small shareholders.
"Recommended the proposal for the subdivision of the Company's one (1) equity share with a face value of T 10/- each into five (5) equity shares with a face value of T 2l- each, subject to the approval of the Ministry of Railways, shareholders, and any other approvals that may be required," it said.
The stock split was decided to increase capital market liquidity, broaden the shareholder base, and make shares more affordable to small investors, according to the business.On the National Stock Exchange (NSE), IRCTC stock finished at a record high of Rs 2,694, up 4.7 percent or Rs 121.75 at market closing. After the management announced its plan for a stock split, the stock achieved an intra-day all-time high of Rs 2,728 earlier in the day.
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