Indian Railway Catering and Tourism Corporation, or IRCTC, charges a convenience fee of Rs 15+GST for bookings in non-AC coaches and 30+GST for reservations in AC ones when someone books the ticket online. On Thursday evening last week, the government announced it would take 50% of the total convenience fees collected. The next morning, the shares of IRCTC nosedived, falling as much as 30% in its steepest intraday decline since 2018 listing.
The shares recouped most of their losses and ended 7.5% lower after the government reversed its decision. This, in a way, signalled that the government would keep the interest of minority shareholders in mind while taking policy decisions with respect to listed PSUs.
