Shares of the Indian Railways’ catering, tourism and online ticketing arm – Indian Railways Catering and Tourism Corporation (IRCTC) – plunged as much as 29 per cent to hit an intraday low of Rs 650.10 on the BSE after the company informed exchanges that Ministry of Railway asked it to share half of all the convenience fee revenue it earns. The Ministry of Railways has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 from November 1, IRCTC said in an exchange filing after market hours on Thursday.
The state-owned IRCTC is the only firm authorised to manage food services on trains and has a monopoly in the online ticketing and catering services for the Indian Railways.
In the previous session, IRCTC shares jumped 20 per cent after it started trading ex-stock split. Starting Thursday, IRCTC shares were split in the ratio of 1:5, sub-dividing the face value of share from Rs 10 per share to Rs 2 per share. IRCTC board had announced the plan to split the stock on August 12.
The decision on stock split was approved by the Ministry of Railways and it took more than two months to complete the process.
As of 10:26 am, IRCTC shares traded 19 per cent lower at Rs 739.35, underperforming the Sensex which was trading on a flat note.