The Indian Railway Catering and Tourism Corporation (IRCTC) has released its quarterly results for June. In addition, the company’s board approved the stock split. The biggest benefit of the stock split is the small investors who have been hesitant to buy shares in the company so far.
What is a Stock Split: Share splitting means stock splitting. As the name suggests, under a stock split, the company will split its shares. The company makes this decision when the share price is more expensive. Stock splitting increases the number of outstanding shares by issuing more shares to existing shareholders. Stock splitting reduces the market value of individual shares, however, the market capitalization of the company does not change. Let us tell you that IRCTC has a share price of Rs 2689.85.
The board of IRCTC has approved a proposal to divide 1 share of the face value of 1 rupee into 5 equity shares of Rs 2 each. This means that Rs. 10 divided by the face value of 5, the face value of Rs. In terms of market capitalization of IRCTC, it is worth Rs 43,037 crore.
The company said the stock split will help increase liquidity in the capital market, expand the shareholder base and make the shares affordable to small investors. The IRCTC expects to complete the stock splitting process within three months from the date of approval of the Ministry of Railways of India.
As a result of news related to Yes Bank, the share price has fallen to its 52-week low
How much profit: IRCTC posted a net profit of Rs 82 crore in the June quarter. The company suffered a loss of Rs 24 crore in the same period a year ago. This was a time when the process of unlocking the corona period was underway but passenger train services were not fully opened. However, passenger rail services have not yet been fully opened, but more trains are now running.