Indian Railway Catering & Tourism Corp (IRCTC) share price rose 15 percent on October 28 as the stock traded ex-split.
The stock split decision was made by the IRCTC Board of Directors on August 12, 2021. The record date for IRCTC shares is October 29th.
The company’s board of directors will meet on November 1 to consider and approve the unaudited financial results for the second quarter and the half year ended on September 30, 2021.
What will happen after the stock split and will the valuation change? Zerodha Founder and CEO Nithin Kamath tweeted.
This is a brief explanation from Nithin Kamath, Founder and CEO of financial services company Zerodha Broking Limited. Kamaths views come through a series of tweets on his official Twitter handle.
Corporate behaviors such as stock splits, bonuses, and rights issues increase the number of shares in a company and thereby lower the price of the shares. This makes no difference. One 100 grams of chocolate, or 20 grams each. Its like having five chocolates, and the values ??remain the same, said another tweet.
IRCTC stock was at INR 920.00, up INR 94.20, or 11.41 percent, on the BSE on the announcement.
IRCTC is the only entity authorized by the Indian Railways to provide catering services, online tickets and packaged drinking water at railway stations and inside trains.