IRCTC share fell down by 11.44% in the last one week, since December 9 closing. The stock was down 2.70% on Tuesday to ₹1,439. Analysts at Angel broking believe IRCTC share price to further come down on December 16. “We expect IRCTC stock to come down after the allotment of shares of OFS i.e. 16th December 2020. Pre-OFS Promoter shareholding is 87.4% and post-OFS it will come down to 67.4%, by this very significant supply will come on the day of allotment of OFS share to investors,” says Yash Gupta Equity Research Associate, Angel Broking.
The two-day IRCTC OFS had began on Thursday, with the first day, i.e., December 10 reserved for non-retail investors and the second day for retail investors.
On First day of IRCTC OFS it got oversubscribed by 1.98x times from the non-retail category. Now the company has fixed the cutoff rate of 1377.55 after the first day of bidding. Total OFS is 20% of paid up equity share capital.
Angel Broking expects limited listing gains and gives a ‘Neutral’ rating to the IRCTC OFS issue. The brokerage remains cautious on the near term business prospects of the company, but given monopolistic nature of the business and strong growth expected post FY2021, the brokerage remains positive on the long term prospects of the company.
The IRCTC stock was listed on the stock exchanges in October 2019. The shares had hit a 52-week high of ₹1,995 in February this year before falling to ₹774.85 in March amid the pandemic-induced selloff in equity markets.
#week #IRCTC #share #OFS #share #allotment #Analysts