Shares of Indian Railway Catering and Tourism Corp. (IRCTC) slumped as much as 30% but pared almost all of its losses after the Railways Ministry withdrew its decision on convenience fees.
The ministry on Thursday had informed IRCTC of its decision to reinstate sharing of the fees, which is nothing but a service charge on tickets sold through the company’s portal, in the ratio of 50:50.
That caused the stock to shed as much as 30%—the steepest since its IPO in October 2019—on the NSE earlier on Friday. The company’s market capitalisation also eroded by over Rs 18,000 crore.
But the stock reversed after the Department of Investment and Public Asset Management Secretary in a tweet said the Ministry of Railways has decided to withdraw the decision.
Read More: IRCTC Share Price: Railways Scores A Self-Goal
The IRCTC stock was only 4% down as of 11:30 a.m.
October has been a roller-coaster ride for the profitable public sector undertaking. On Oct. 19, it had gained more than 8.8% to a record high of Rs 6,396.3 apiece. That propelled the company’s market value to Rs 1 lakh crore, albeit briefly. The scrip then dropped sharply and ended in losses. It has lost about a third of its value from a record high earlier this month.
