IRCTC Shares Gain As LIC Increases Stake In Company To 9.3%

Shares of Indian Railway Catering and Tourism Corp. rose on Friday after Life Insurance Corp. of India said that it increased its stake in the company from 5.82 crore shares to 7.43 crore shares over Dec. 16, 2022 and Sept. 11, 2024.

In terms of paid-up capital, LIC now holds 9.3% as against 7.3% around two years ago, according to an exchange filing from the insurer. The transaction happened through open market purchase.

LIC has also increased its stake in Container Corp. Of India from 5.77% to 7.78% of the paid-up capital over Oct. 19, 2023 and Sept. 6, 2024.

Shares of IRCTC rose as much as 2.76% to the highest level since Aug. 2. They pared gains slightly to trade 2.5% higher at Rs 955.15 apiece, as of 9:40 a.m., compared to a 0.3% decline in the NSE Nifty 50.

The stock has risen 7.59% year-to-date and 40.2% in the last 12 months. Total traded volume on the NSE so far in the day stood at 0.75 times its 30-day average. The relative strength index was at 55.87.

Out of nine analysts tracking the company, four maintain a 'buy' rating, one recommends a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 10%.

Shares of LIC were trading 1.1% higher at Rs 1,042.75 per share as of 9:49 a.m.