After a blockbuster debut, IRCTC shares fell for the second day in a row on Wednesday by nearly 2 per cent.
After a blockbuster debut, Indian Railway Catering and Tourism Corporation (IRCTC) shares fell for the second day in a row on Wednesday by nearly 2 per cent. The shares fell 1.75 per cent to end the intraday trade at Rs 700.60 on the BSE. On the NSE, it dropped by 1.75 per cent to close at Rs 700.65. The stock has plunged by nearly 4 per cent in the last two days combined. The IRCTC stock had listed on the bourses on Monday. The scrip registered a stellar listing of 129 per cent against the issue price of Rs 320 per share.
In a three-day bidding process earlier in October, the IPO of IRCTC was subscribed 111.91 times. IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. The IRCTC website is one of the world’s most viewed websites and ranks under 400 globally, and under 30 in India. The company not only caters to railway reservations but also provides services such as hotels, lounges, flights, meals, and wallet facility.
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Meanwhile, IRCTC generated a revenue of Rs 1,899 crore in FY19, up 25 per cent from the previous fiscal. The net profit jumped 23.5 per cent on-year to Rs 272.50 crore in financial year 2019. The firm which sells tickets for Indian Railways and handles its catering services saw 72 lakh logins per day, and 2.5 crore logins in a month. IRCTC has earned the reputation of being one of the most transacted websites in the Asia-Pacific region, with customers booking around 8 lakh tickets per day. Incorporated by the government in 1999, IRCTC was conferred the status of Miniratna (Category-I Public Sector Enterprise) status in 2008.