Will IRCTC Join In Golden Stocks List?
From the last few days, investors are eagerly waiting for the IRCTC IPO, which is the subsidiary of Indian Railways. Finally, it had listed on Monday at the National Stock Exchange and Bombay Stock Exchange. The shares of IRCTC listed at a premium price over the issue price. As of the data, it had listed at over 100 percent premium. With this move, the IPO creates a sensation in the Indian equity market. Now, the hot topic in the stock market is will IRCTC turn as Golden Stock or Penny Stock?
The reports told that 10 more IPOs listed over 100 percent premium in the history of the Indian equity market. In these 10 IPOs, some of them have turned as penny stocks.
Tantia Constructions, GCM Securities, FCS Software Solutions, Avenue Supermarts, Salasar Techno Engineering, Astron Paper & Board Mill, Max Alert Systems are the most successful IPOs that listed over 100% premium at stock exchange platforms.
In this list, Tantia Constructions IPO had debuted on the bourses in 2016. It was listed at a 260 percent premium at Rs 180. In 2013, GCM Securities IPO had debuted at a 200 percent incentive to issue price. Besides, FCS Software Solutions had debuted at a 200 percent premium in 2005. In 2017, Avenue Supermarts, Salasar Techno Engineering, Astron Paper & Board Mills IPOs listed over 100 percent premium to issue price.
As of the data available on the official stock exchange platform, unfortunately, the IPOs listed at the premium price have now turned into penny stocks. As of IST on 15th Oct, FCS Software share price stayed at Rs 0.25 and Tantia Constructions shares at Rs 1.40. It means all that glitters is not gold! This line is also applicable for other stocks such as Max Alert Systems which debuted at 157% premium and last traded at Rs 4.84. Moreover, GCM Securities listed at 225 percent, now share value is Rs 9.38.
Golden Stocks (IRCTC Turns As Golden Stock)
A few stocks which got listed at a premium price have now turned into gold stocks. In which, Avenue Supermarts share price stood at over six times its issue price at Rs 1,843. TV Today Network had debuted at 121 percent premium in 2004. Now, the shares traded at thrice to its issue price. The share value of this stock is Rs 301.
As of the experts’ analysis, No one does not expect IRCTC to fall into the above category. It follows a unique business model. The firm plans to double its revenue around Rs 240cr to Rs 450 crore in Fiscal 2021. Experts said that IRCTC has the potential to give good returns in the next year.