IRCTC Share Price News: IRCTC had told in an exchange filing that the Railway Ministry has asked it to share the revenue received on its conveyance fee from November 1 in the ratio of 50:50.
Mumbai: A demand of the Ministry of Railways brought a big fall in the shares of IRCTC (Indian Railways Catering and Tourism Corporation), a government partner company of catering, tourism and ticketing .
However, after seeing such a decline, the news came that the ministry has withdrawn its demand. IRCTC shares fell 29% in early trade on Friday and reached intraday low i.e. the lowest level of the day with a price of Rs 650.10 per share.
In fact, IRCTC had informed the stock exchanges on Thursday that the Ministry of Railways has asked the company to share half of the profit from the convenience fee with it.
IRCTC had said in an exchange filing on Thursday evening that the Railway Ministry has asked it to share the revenue received on its conveyance fee in the ratio of 50:50 with effect from November 1.
However, when the shares of IRCTC fell, after that a tweet from the Department of Investment and Public Asset Management (Department of Investment and Public Asset Management) was told that the Railway Ministry has withdrawn the demand made on the convenience fee revenue. After this there was a recovery in the shares of the company.
Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee pic.twitter.com/HXIRLxXTlL
— Secretary, DIPAM (@SecyDIPAM) October 29, 2021
Let us inform that at 11.32 in the morning, the company’s shares had fallen by 4.61% or 42.15 and the stock was trading in the red mark at Rs 871.35 per share.
Split trading of IRCTC shares was started in the last trading session, after which its shares had gained 20 percent on Thursday. The shares of the company were split in the ratio 1:5. The split was announced by the IRCTC board on August 12. It was also approved by the Ministry of Railways. Stock split process took two months
From ticket booking to food, catering, staying facility etc., the government company IRCTC runs a single rule in the railways.
Congress criticized
On the other hand, the Congress has strongly criticized the stand of the Railway Ministry in the IRCTC matter. Congress spokesperson Pawan Khera told NDTV that ‘IRCTC is an example that the government first wants to weaken PSUs by conspiring and then wants to sell them to their colleagues.
No government can do such step-motherly treatment to its PSUs. This raises questions on disinvestment. This is an example of the way IRCTC shares fell and then in a hurry, the Railway Ministry withdrew the decision.
Video: Railways is earning lakhs of rupees due to garbage disposal, the contract is for 5 years with a private company
