The ministry of railways has asked its Indian Railways Catering and Tourism Corporation (IRCTC) to share 50% of convenience fee the company earns with effect from November.
Till now, IRCTC has kept 100% of the convenience fee it earned from customers for providing various services.
The majority of the revenue comes from convenience fee and this should be major blow to the IRCTC earnings. Share price is expected to take a hit in response to this news.
- Since the listing in October 2019, the stock has given stellar returns to investors. Since the start of 2021, the scrip has surged over 200% and by massive 246% in past one year.
- Also, IRCTC shares were traded ex-split today. The record date has been set as October 29, Friday for the sub-division of equity shares of ₹10 each into five equity shares of ₹2 each.