Stock Split: A Case of IRCTC

Stock Split: A Case of IRCTC
Case Code: FINC189
Case Length: 8 Pages
Period: 2020-21
Pub Date: 2022
Teaching Note: Available
Price: Rs.300
Organization: Indian Railway Catering and Tourism Corporation Limited (IRCTC),
Industry: Travel & Tourism
Countries: India
Themes: Stock Split, Corporate Finance
Stock Split: A Case of IRCTC
Abstract Case Intro 1 Case Intro 2 Excerpts


Indian Railway Catering and Tourism Corporation Limited (IRCTC) was established in 1999 by the Government of India as a public limited company to meet the needs of travelers of the Indian Railways. IRCTC offered various services and products, including catering, online ticketing, and packed drinking water, among others. Over the period, the company established itself as a strong player with a sound financial position, thanks to a monopoly in online train ticketing for Indian Railways.

In 2019, IRCTC went in for an IPO and was later listed at a premium of more than 101% over the offer price of Rs. 320. The growth story of IRCTC stock continued and the share price touched Rs. 2,331.30 by July 2021. The company’s management decided to go in for a stock split in October 2021. Before the stock split, IRCTC’s stock had reached a record high of Rs. 6,369 on October 14, 2019. The IRCTC stock was performing well and many analysts suggested holding the stock after the stock split. However, some experts cautioned investors against investing in any stock after the stock split.


The case is structured to achieve the following teaching objectives:

  • Understand the significance of the corporate actions of a company.
  • Analyze the effect of a stock split on the market price of the company.



IRCTC; Investment Decisions; Stock Split; Stock Split in India; Impact of Stock Split on share price; Ex-date; Record Date; Share price momentum; Corporate Actions; Different Types of Stock Split; Reasons for Stock Split; Profit Distribution; Profit Sharing

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