IRCTC shareholding: MFs' stake falls below 1%, FPIs sell 2.2% holding

Between October 1, 2021 and November 5, 2021, MFs reduced their stake in IRCTC by 4.09 percentage points to 0.69%

Institutional investors led by domestic mutual funds (MFs) and foreign portfolio investors (FPIs) further reduced their stake in Indian Railway Catering and Tourism Corporation (IRCTC) ahead of stock split.

According to shareholding pattern dated November 5, 2021, filed by IRCTC on Wednesday, November 17, 2021, MFs' holding in the state-owned travel support services company fell below 1 per cent mark at 0.69 per cent. They reduced their stake in IRCTC by 4.09 percentage points between October 1, 2021 and November 5, 2021. MFs held 4.78 per cent holding at the end of September quarter (Q2) and 7.28 per cent stake at the end of June quarter (Q1), data shows.

Foreign portfolio investors (FPIs) also reduced their stake in IRCTC by 2.12 percentage points to 5.69 per cent from 7.81 per cent in Q2. They held 8.07 per cent in Q1. However, retail investors accumulated IRCTC shares during the period. Individual shareholders increased their stake in the company by 6.66 percentage points to 20.97 per cent from 14.31 per cent in previous quarter. Individual shareholders held 11.48 per cent holding in IRCTC in Q1. The state-owned insurance giant, Life Insurance Corporation of India's (LIC's) stake in IRCTC remained unchanged at 2.11 per cent, data shows.

On October 28, 2021, the scrip of IRCTC turned ex-stock split (sub-division of equity shares) in ratio of 1:5 i.e. equity shares of Rs 10 each into five equity shares at a face value of Rs 2 each.

On October 29, IRCTC had informed the stock exchanges that the Ministry of Railways had conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 with effect from November 1. However, on October 30, the Ministry withdrew its claim over half the convenience fee collected by the company after the stock tanked 29 per cent in intra-day trade to Rs 650 level from Rs 914 on October 28.

IRCTC is the only entity authorised by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. It has a dominant position in online rail bookings and packaged drinking water with around 73 per cent and 45 per cent market share, respectively.

At 11:22 am, the stock of IRCTC was down nearly 3 per cent at Rs 878.70, after hitting an intra-day low of Rs 871 on the BSE. In comparison, the S&P BSE Sensex was down 0.69 per cent 59,595 points. It had hit a record high of Rs 1,278.60 on October 19, 2021.