IRCTC share price: While announcing its Q1 FY2021-22 results, the Indian Railway Catering and Tourism Corporation (IRCTC) management announced to split IRCTC shares into 1:5. If the approval gets nod from the Ministry of Railways and the existing share holders, the IRCTC share price face value would become ₹2 instead of existing ₹10 per equity share. Similarly, IRCTC stock price would come down at around ₹500 to ₹550 from existing ₹2666 share levels. According to experts, this sub-division of IRCTS shares won’t impact company valuations but it would become easy for small investors to invest in IRCTC stocks after the split. They advised small investors to take advantage of this IRCTC stock split and add this counter in one’s portfolio.
Speaking on the impact of IRCTC stock split Saurabh Jain, AVP — Research at SMC Global Securities said, “This split won’t impact the company valuations. It is not going to impact the existing share holders as well as IRCTC share price will also come down in sync with share split after share price adjustment. But, it will make possible for the small investors to invest in IRCTC stocks as IRCTC share price will come down at around ₹500 to ₹550. So, those who can’t afford to invest in stock priced at ₹2500 or above, can now invest in IRCTC.”
On how it will help IRCTC as a listed company; Ravi Singhal, Vice Chairman at GCL Securities said, “Once small investors will be able to invest in IRCTC stocks, some extra volume in the stock trade is expected as existing investors will continue to invest in the stock after the share price adjustment.
So, after the sub-division of IRCTC shares, some more liquidity is expected in the IRCTC share trade.”Whether one should buy IRCTC shares after stock split; Ravi Singhal of GCL Securities said, “Small investors who can now afford to invest in IRCTC shares are advised to buy IRCTC shares at around ₹450 to ₹470 maintaining stop loss at ₹370. The stock is expected to regain its pre-split price in next four to five years.”