Indian Railway Catering and Tourism Corporation (IRCTC) is a subsidiary of Indian Railways that handles the catering, tourism and online ticketing operations for the Indian Railways. IRCTC has become a major player in the Indian stock market, with its market capitalization reaching Rs 30000 crore in two days. In this article, we will look at how IRCTC’s market cap fell and the reasons behind it, as well as the impact of the market cap fall and what lies ahead for IRCTC.
What is IRCTC?
IRCTC is a subsidiary of the Indian Railways and is responsible for catering, tourism and online ticketing operations for the Indian Railways. It is the only entity authorized by the Indian Railways to provide e-ticketing services. It also operates the official website of the Indian Railways, www.irctc.co.in, which allows users to book tickets, check availability and fares, and track the status of their tickets. IRCTC also provides online payment options for users, as well as an online customer care service.
How Did IRCTC’s Market Cap Fall?
IRCTC’s market capitalization fell from Rs 50000 crore to Rs 30000 crore in two days. This was largely due to the decline in the stock price of IRCTC, which fell from Rs 1,400 to Rs 900 in two days. The decline in IRCTC’s stock price was driven by a number of factors, such as the government’s decision to cap the fare of tickets booked through the IRCTC website, as well as the introduction of a new ticketing system by the Indian Railways.
Reasons Behind the Market Cap Fall
The primary reason behind the decline in IRCTC’s market capitalization was the government’s decision to cap the fare of tickets booked through the IRCTC website. The government had earlier announced that it would cap the fare of tickets booked through the IRCTC website at Rs 1,000 for short-distance tickets and Rs 1,500 for long-distance tickets. This decision had a negative impact on the revenue generated by IRCTC, which led to a decline in its stock price.
The second factor behind the decline in IRCTC’s market capitalization was the introduction of a new ticketing system by the Indian Railways. The new system, which is known as the ‘Unreserved Ticketing System’, allows passengers to book tickets without having
