Shares of Indian Railway Catering and Tourism Corporation (IRCTC) surged more than 15 percent on Thursday after the division of shares.
At 9:40 am, IRCTC shares were trading nearly 16 percent higher at Rs 943 per share. The stock opened at Rs 813 at 9:15 am.
The board of the company has given its nod to a stock split in the ratio of 1:5, cutting its face value from Rs 10 to Rs 2 each.
In the run-up to this stock split, the shares had declined in the last five days, falling over 80 percent from the highs of Rs 4,627.
Also Read | IRCTC's roller coaster ride, memefied
The stock has largely been a consistent performer ever since it hit the bourses in October 2019.
In the last three months, the stock added over 100 percent as ticket bookings surged after the reopening of the economy as the second wave of COVID-19 infections ebbed.
According to analysts, the stock split is positive as the cheaper front will increase its demand, thereby adding to the upmove.
A stock split increases the number of shares of a company without diluting its value. It also decreases the price of the share. Post-split, the stocks look more affordable and less intimidating, which increases their demand.