IRCTC Shares Rebound After Railway Ministry Scraps Decision on Convenience Fee
The Railways had ordered IRCTC to share 50 percent of the revenue earned from convenience fee collected by them.
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) saw a marked recovery on Friday, 29 October, morning after the government reversed a decision wherein the company was asked to share 50 percent of the convenience fee revenue with the Ministry of Railways.
The Railways had on Thursday ordered IRCTC to share 50 percent of the revenue earned from convenience fee collected by the company, effective from 1 November.
"Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," the Secretary, Department of Investment and Public Asset Management tweeted on Friday morning.
This came hours after IRCTC shares fell 29 percent on the BSE, reported NDTV. According to The Indian Express, IRCTC shares had crashed to Rs 639.45 apiece on NSE, a fall of 30 percent from closing.
Soon after the decision was reversed, IRCTC stock saw a recovery of 39 percent, reaching an intraday high of Rs 906, reported NDTV.
(With inputs from NDTV and The Indian Express.)
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