In a Spectacular Turn Around, IRCTC Stock Manages to Recover Major Loss

  • Investing.com
  • Stock Market News
In a Spectacular Turn Around, IRCTC Stock Manages to Recover Major Loss
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The shares of e-ticket booking platform for Indian Railways, IRCTC (NS: INIR ) recovered significantly to Rs 855, down only by 6.29% at 12:30 pm, after the Government reportedly withdrew its decision to share IRCTC’s revenue from convenience fees.

Top officials at IRCTC have reported that the board of Railways ministry will have a meeting with senior officials of IRCTC at 4 pm on Friday (today) to discuss the decision of withdrawing to share the latter's revenue generated from convenience fee, as per a syndicated news feed.

Earlier in the morning, the stock plunged by 29% to Rs 650.10, hitting an intraday low in Friday’s session, after the announcement of the railway ministry sharing half of IRCTC’s revenue generated from the convenience fee, starting November 1, 2021, surfaced.

In the process, IRCTC’s market capitalisation fell by nearly Rs 18,000 crore in a jiffy.

A tweet from the Secretary, Department of Investment and Public Asset Management, clarified that the Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee.

The convenience fee by IRCTC is a major/key source of its revenue generation. For 2020-21, income generated from convenience fee of Rs 299.13 crore, was the largest contributor to IRCTC’s revenue, which was Rs 349.64 crore in 2019-20.

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  • Ranjit Kumar Jain @Ranjit Kumar Jain
    seems minister r in IRCTC scamby providing irresponsible remarks by rly board
    Like 1
  • ram rasool @ram rasool
    it's all manipulation by goverment insiders and big operators to fleece retail investors.
    Like 2
  • Gangadhar B @Gangadhar B
    Before going to take such decisions which influence the market ans and script, Govt should think twice. just for 500 crores Govt took that decision but most of the investors lost their money around 6000 crores in today's trade.
    Like 2
  • Rajan Darji @Rajan Darji
    why Modi's face in thumbnail?
    Like 3
    • Slog over @Slog over
      Because Modi hai toh mumkin hai...
      Like 3
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      100
  • Rajan Darji @Rajan Darji
    why Modi's face in thumbnail?
    Like 1

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