IRCTC shares fell up to 29% to hit a low of Rs 650.
Shares of Indian Railways’ catering, tourism and online ticketing arm – Indian Railway Catering and Tourism Corporation (IRCTC) fell as much as 29 per cent to hit a low of Rs 650.10 on BSE after the company informed exchanges that the Ministry of Railways has Asked him to share half of all facilitation fee revenue. The Ministry of Railways has conveyed its decision to share the revenue earned from the convenience fee collected by IRCTC in the ratio of 50:50 with effect from November 1, IRCTC said in an exchange filing after market hours on Thursday.
State-owned IRCTC is the only firm authorized to manage food services on trains and has a monopoly in online ticketing and catering services for the Indian Railways.
In the previous session, IRCTC shares jumped 20 per cent after starting trading of ex-stock split. From Thursday, IRCTC shares were split in the ratio of 1:5, reducing the face value of the share from Rs 10 per share to Rs 2 per share. The IRCTC board had on August 12 announced the plan to split the stock.
The stock split decision was approved by the Ministry of Railways and the process took more than two months to complete.
As of 10:26 am, IRCTC shares were trading 19 per cent lower at Rs 739.35, weakening the Sensex, which was trading on a flat note.
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