IRCTC to share 50% convenience fee with Railway Ministry, should investors worry?
Zee News
IRCTC will now share the revenue earned from convenience fees in the ratio of 50: 50.
New Delhi: The Indian Railway Catering & Tourism Corporation Limited (IRCTC), on Thursday (October 28), announced that the Ministry of Railways has decided to share the revenue IRCTC earns from convenience fees in the ratio of 50: 50.
The latest will come into effect from November 2021. Following the IRCTC announcement, market experts are expecting a fall in the share prices of the state-owned firm that currently enjoys a dominating monopoly.
“ln compliance with the Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015, it is to be informed that Ministry of Railways vide above-referred letter has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50: 50 w.e.f 1st November 2021,” Suman Kalra, Company Secretary and Compliance Officer at IRCTC said in an official announcement dated October 28, 2021.
