By Malvika Gurung
Investing.com -- Shares of the e-ticket booking platform for Indian Railways, IRCTC (NS:INIR) rallied over 13% in early-trade hours on Thursday, as the company’s stock split in the ratio 1:5 came into effect.
The ticketing major will finalise/ascertain ‘name of shareholders entitled to sub-division of equity shares of Rs 10 each into five equity shares of Rs 2 each on October 29, as per IRCTC’s board approval on August 12.
The stock was last trading 10% up at Rs 910 on Thursday.
In order to enhance the stock’s liquidity in the capital market and make it more affordable for small investors, IRCTC had announced splitting its stock in the ratio 1:5, meaning one share valued at Rs 10 would be split into 5 equity shares (face) valued for Rs 2 apiece.
The stock split will increase the number of shares in the market, while the total market capitalization of the stock would remain unchanged.
Furthermore, stocks of R & B Denims Ltd (BO:RBDE), Indo National Ltd (NS:INNL), and Raghuvir Synthetics Ltd (BO:RAGU) turned their ex-stock split in the ratios of 1:5, 1:5 and 10:1, respectively.