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Indian Railways`catering arm slumps after ministry asks for 50% convenience fee share
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BENGALURU - Indian Railways Catering and Tourism Corporation (IRCTC) shares plunged as much as 20% in early trade on Friday, after the railway ministry asked its catering and tourism arm to share half of all the convenience fee revenue it earns.
The Ministry of Railways has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 from Nov. 1, IRCTC said in a regulatory filing on Thursday.
The state-owned IRCTC is the only firm authorised to manage food services on trains and has a monopoly in the online ticketing and catering services for the Indian Railways.
The stock dropped 20% to 730.80 rupees by 0419 GMT, while other Indian public sector companies were also hit, with the public sector enterprises index falling 2.8%, the top loser among sub-indexes
