IRCTC convenience fee controversy will impact PSU pack, say analysts

Firm's stock tanked 29% intraday on Friday after it said a day earlier that it was asked to share half its convenience fee with railways

While the government has managed to do damage control, the IRCTC convenience fee controversy could weigh on investor sentiment towards the PSU pack—most of whom already trade at a significant discount to their private sector peers.

On Thursday post-market hours, IRCTC in an exchange filing said that it has been asked to share half its convenience fee with the railway ministry. Investors panned the decision, and the stock tanked 29 per cent intraday on Friday and led to market cap erosion of over Rs 20,000 crore.

However, the government rolled back its decision, and the stock recouped most of its