Mumbai: The train ministry sent a surprise to Dalal Street during the post-market hours Thursday after the IRCTC, one of the most preferred shares among investors in the past few months, said that from November 1, the government would have a 50% stake of the cost of convenience.
that the online reservation monopoly collects its customers.
Market players and analysts feel this government’s decision can weigh on stock in the short term.
At present, IRCTC does not share collections from these accusations with the government.
However, some analysts show that during the IPO in 2019, the company has shown this as a risk of shares.
On Thursday, after each IRCTC shares were divided into five, from the nominal value of Rs 10 to RS 2, closed at Rs 914 in BSE, up almost 11% on that day.
In the disclosure of the exchange, IRCTC on Thursday said that train services on October 28 have “delivered their decisions to share income obtained from the cost of comfort gathered by the IRCTC in a 50:50 ratio.
As a result, analysts drastically cut income estimates for IRCTC while traders expect sharp selling in stock on Friday.
In the past year, when the economy slowly opened after locking March-June 2020, stock had risen more than four times.
According to analysts, this government’s decision can cause a deduction of 27-30% in the 2023 IRCTC fiscal income.
“This is a very big negative development and we expect a sharp correction in stock prices after this announcement,” said an analyst.
However, traders showed that because the government announced this decision on the day every stock of IRCTC was divided, investors had not received credit for four extra shares for each share they hold now in their Demat account.
This additional stock will reflect the ownership of their fever around next week and until then sales can be limited.