On Friday, within an hour and a half of the market opening, the price of IRCTC plummeted by 29%, reaching a daily low of 650.10 rupees.
IRCTC shares revenues from convenient rates for bookings on the platform with the Ministry of Railways, Indian Railway Catering and Tourism Corporation (IRCTC) at a 50:50 ratio, and half of all revenues are convenient rates. Shared charges, DIPAM secretary Tuhin Kanta Pandy told CNBC TV18.
“The Ministry of Railways has decided to withdraw the IRCTC tariff decision,” tweeted DIPAM secretary Tuhin Kanta Pandy.
A railroad executive told Moneycontrol that convenient fare sharing had taken place before the pandemic.
On October 28, IRCTC reported that it was necessary to share convenient toll revenues for bookings on the platform with the Ministry of Railways in a 50:50 ratio. Convenience fees collected from customers have generated significant revenue for IRCTC. Fares are not part of the rail fare. Used for online ticket booking provided by IRCTC.
On October 29, IRCTC’s share price fell 20% following the above report.
A sell order for 3,933,837 shares with no buyers was pending.
“Only 100 percent was given to the company because of the pandemic,” officials said and asked not to name it.