IRCTC shares jumped over 3 per cent to trade at Rs 1,459.95 apiece on BSE after the Indian Railway Catering and Tourism Corporation announced to run additional special trains with effect from Saturday, September 12, 2020. The stock hit a 52-week high of Rs 1,995 apiece in February this year since then the stock has corrected nearly 27 per cent. In March this year, Indian Railways cancelled all the passenger train services and passenger ticketing in an attempt to contain the fast-spreading Coronavirus pandemic. “Indian Railways to run additional 40 pairs of more special trains w.e.f. 12th September 2020. These will be fully reserved trains. Tickets can be booked from 10th September 2020,” Ministry of Railways said.
IRCTC shares were trading 1.39 per cent higher at Rs 1,434 apiece, as compared to a 0.66 per cent gain in S&P BSE Sensex. So far in September, IRCTC shares have gained 8 per cent. These trains will be in addition to the existing 30 special Rajdhani type trains started effective from May 12, 2020, and 200 Special Mail Express trains introduced effective from June 1 (total 230 trains).
IRCTC shares were listed on bourses on October 14, 2020, at a listing price of Rs 644 per share. In a BSE filing, IRCTC informed that these services shall be in addition to the Shramik specials and the special trains, which are already under operation. “The composition of these trains would be the same as of existing regular services. Stoppages shall be restricted in view of the suggestions of State Governments. These will be fully reserved trains,” it added.
Last month the government invited bids from merchant bankers for managing the stake sale in Indian Railway Catering and Tourism Corp (IRCTC). DIPAM while inviting Request for Proposal (RFP) said that the GoI intended to disinvest a part of the paid-up equity capital of IRCTC out of its shareholding through ‘Offer for Sale (OFS) method of shares by promoters through the stock exchanges’ as per Securities and Exchange Board of India (Sebi) Rules and Regulations. In the January to March quarter of FY20, IRCTC reported a 79.3 per cent jump in net profit from a year ago. The company reported a net profit of Rs 150.6 crore, compared with Rs 84 crore a year ago.
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