Foreign investors from IRCTC and Mu. Exit funds, small investors trapped

MUMBAI: In the bull run of the Indian stock market, market regulators are silent on the issue of major upheavals in the stocks of zinc companies and small private companies and retail investors are trapped in such companies in a bid to make big money. However, now this situation is also being created in the government company.

Shares of Indian Railway Catering and Tourism Corporation Limited (IRCTC), under the auspices of the Railway Ministry, also stalled before splitting at the end of an unexpected move that began in March.

Small investors were devastated when IRCTC's Rs 500 stock plunged to Rs 200 in just two sessions. On September 30, the share price was 3 per share, which was around Rs 5,000 on the record date of 9th split.

However, even after the split, the IRCTC's craze is not diminishing. According to the company's listing on the BSE, the number of retail investors with a capital investment of less than Rs 5 lakh on November 9, 2021 has seen a bumper increase.

The number of retail investors rose to 30.50% on November 9, from only 19.12% at the end of the quarter ended September 30. The number of investors investing more than two lakh has also increased modestly.

Interestingly, the Singapore government does not even have a name in the list of shareholders as of November 9, which means it has sold its stake, while at the end of the September quarter, it had a 1.5% stake. Apart from this, the FPI also had a 5.81% stake which has now come down to 6.5%.

Mutual funds also have a shocking figure. As on September 30, the fund houses had a 6.5% stake, which is only 0.2% in the November list, which means that the fund houses have also invested heavily in the IRCTC and retained retail investors.