MUMBAI: The railways ministry sent a shocker to Dalal Street during Thursday’s post-market hours after IRCTC, one of the most favoured stocks among investors in recent months, said that from November 1, the government will have a 50% share of the convenience fee that the online reservation monopoly charges to its customers. Market players and analysts feel this decision of the government could weigh on the stock in the short term.
Currently, IRCTC does not share collections from these charges with the government. However, some analysts pointed out that during its IPO in 2019, the company had pointed out this as one of the risks to the stock. On Thursday, after each IRCTC stock was split into five, from face value of Rs 10 to Rs 2, it closed at Rs 914 on the BSE, up nearly 11% on the day.
