New Delhi: The government scrapped its proposal to share half of the state-run company’s convenience fee revenue after shares of India’s top railway e-ticketing platform recovered from a record fall of nearly 30%.
Shares of Indian Railway Catering and Tourism Corp, after falling earlier in the session, traded 3.2% lower as of 11.20 am in Mumbai.
The development affected some other state-run companies as well. Potential disinvestment candidate Container Corp fell up to 3.9%, while Bharat Petroleum Corp fell up to 1.7%.
uncertainty related to IRCTC There may be a burden on the confidence of investors in the Prime Minister Narendra Modiits reform agenda, including its plans to divest national assets and make the insurance giant’s initial public offering Life Insurance Corporation of India.
Deven Choksi, a strategist at KR Choksi Investment Managers Pvt Ltd in Mumbai, said the government is not keeping the “interest of investors in mind while taking business decisions”. “They will always kill the money before they make it.”
While the stock has lost nearly a third of its value earlier this month, it is still up more than 900% since its market debut in October 2019 mainly due to the monopoly of online rail ticket booking. According to data compiled by Bloomberg, the market cap of IRCTC, which is not yet part of the MSCI India index, stood at $9.77 billion as of Thursday, higher than many of the gauge’s members.
Shares of Indian Railway Catering and Tourism Corp, after falling earlier in the session, traded 3.2% lower as of 11.20 am in Mumbai.
The development affected some other state-run companies as well. Potential disinvestment candidate Container Corp fell up to 3.9%, while Bharat Petroleum Corp fell up to 1.7%.
uncertainty related to IRCTC There may be a burden on the confidence of investors in the Prime Minister Narendra Modiits reform agenda, including its plans to divest national assets and make the insurance giant’s initial public offering Life Insurance Corporation of India.
Deven Choksi, a strategist at KR Choksi Investment Managers Pvt Ltd in Mumbai, said the government is not keeping the “interest of investors in mind while taking business decisions”. “They will always kill the money before they make it.”
While the stock has lost nearly a third of its value earlier this month, it is still up more than 900% since its market debut in October 2019 mainly due to the monopoly of online rail ticket booking. According to data compiled by Bloomberg, the market cap of IRCTC, which is not yet part of the MSCI India index, stood at $9.77 billion as of Thursday, higher than many of the gauge’s members.
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