IRCTC and IEX shares rebound ahead of bonus issue and share split

Shares of IRCTC and Indian Energy Exchange (IEX) surged again on Tuesday after a downgrade spiral since their respective record all-time high levels
IRCTC and IEX shares rebound ahead of bonus issue and share split

New Delhi: Much to the relief of investors the shares of IRCTC and Indian Energy Exchange (IEX) surged again on Tuesday. IRCTC shares closed at Rs 4214 (NSE) apiece which is around to 4.76% higher from Monday evening close. Shares of IEX closed at Rs 742 (NSE) apiece which is around 6.15% higher from Monday evening close that was Rs 699 apiece. IRCTC board has announced a stock split in the ratio of 1:5 to enhance the liquidity in the capital market, widen the shareholder base and make the shares affordable to small investors. The Railways PSU has set October 29, 2021, as its record date for sub-division of equity shares of Rs 10 each into five equity shares of Rs 2 each.

IRCTC shares hit an all-time record high of Rs 6,369 on October 19. The stock had been a consistent performer, giving stellar returns, since it made its debut in October 2019. However, the stock struggled to keep up with its rally in the past few sessions. IRCTC came under pressure last week after it was placed under the F&O ban list. While the stock is out of the ban list, the volatility is still at the higher side, say the market experts.

IEX is the premier electricity exchange in India, which facilitates the trading of electricity. It commands a market share of around 95% in the power exchange market. The energy exchange's stocks have been in focus after announcing the bonus shares issue along with its second-quarter earnings. For the past year, IEX has remained richly valued given its clean balance sheet, near-monopoly and bright future prospects.

IEX board has recommended a bonus issue of equity shares in the proportion of 2:1, subject to the approval of shareholders. The record date for the bonus issue is yet to be announced.

On October 22 the energy exchange had posted a nearly 75 percent jump in consolidated net profit at Rs 77.38 crore for the September quarter, mainly on the back of higher revenues.

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