Shares of IRCTC wave up today as much as 10% to a new high of ₹1,549, taking their gains to nearly 50% in just seven trading sessions. IRCTC will announce its third quarter results on 12th February. IRCTC is also set to soon start its third private train, Indore -Varanasi Tejas Express. In Budget 2020 proposition, Finance Minister Nirmala Sitharaman had announced that more Tejas-like trains will be coming in future. Indore -Varanasi Tejas Express will be the first Tejas Express which will run overnight.
IRCTC had reported a 14% jump in net profit at ₹172 crore for the half-year period ended September 30, 2019. Low floating stock and monopoly business are some of the reasons laid by analysts for the strong run in IRCTC shares. At the end of December quarter, the government held 87.40% shares in the Railways subsidiary.
IRCTC shares have bound over 4 times in value, making it the most successful IPO in recent times.IRCTC had recently remake charges of standard meals on static units over Indian Railways.Fair trade regulator CCI has cleared Indian Railways and its arm IRCTC of allegations of illegal market practices.The order came after the regulator in November 2018, ordered a detailed research into the allegations to kick around the leading market position against Ministry of Railways and IRCTC for charging higher price than actual base fare on the sale of e-tickets.
It was accused that the two organizations round off the actual base fare to the nearest higher multiple of ₹5 to arrive at the total base fare, and the practice amounted to it’s duty of unfair condition in the market for sale of rail tickets in India, particularly for online booking.
NOTE:
- IRCTC is set to soon start its third private train soon
- The govt holds 87.40% of shares in IRCTC
