MUMBAI: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) plunged on Friday morning on the back of revenue share issue with the Indian railways.
Accordingly, the company's scrip at the BSE traded at Rs 863.30, down 50.45 or 5.52 per cent around 12.00 p.m. from its previous close of Rs 913.75.
The stock opened deep in the red at Rs 822.40.
It plunged to an intraday low of Rs 650.10 but recovered thereafter.
On Thursday, it informed the BSE, that Ministry of Railways' decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 from November 1, 2021.
According to Santosh Meena, Head of Research, Swastika Investmart: "It is a big negative surprise for the investors of IRCTC as the government has asked the company to share half of its convenience fee from the Internet booking."
"It will be difficult to take action after a big gap down opening, therefore existing shareholders are advised not to act as the other fundamentals of the company are still strong."