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HomeLatestIRCTC Shares Surge as Railways Ministry Approves Shorter Catering Contracts

IRCTC Shares Surge as Railways Ministry Approves Shorter Catering Contracts

The shares of Indian Railway Catering and Tourism Corporation (IRCTC) experienced an upward spike on the National Stock Exchange (NSE), reaching Rs 720.3 and marking a notable increase of Rs 19.1. This surge follows a recent decision by the Railways Ministry to approve seven-year tenders for train catering services, in alignment with the Yatri Seva Anubandh (YSA) policy. This departure from the earlier plan, which considered ten-year contracts, has positively impacted investor sentiment.

The policy update, disclosed after market hours, coincides with IRCTC’s commencement of commercial production of its Neer packaged drinking water at a newly established plant in Bhubaneswar since Friday, November 17. The addition of this facility substantially enhances IRCTC’s daily water production capacity by 72,000 liters, bringing the total to nearly 1.7 million liters per day.

IRCTC’s impressive share performance throughout the year, witnessing an appreciation of approximately 12%, outpacing the Nifty50 index’s gain of nearly nine percent, underscores its status as a Miniratna-status company under the Ministry of Railways. This robust performance reflects investor confidence in IRCTC’s growth trajectory and operational expansions, solidifying its position in the market.