'IRCTC is new ITC of the meme world’: Here’s how the internet reacted to IRCTC stock split

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have been on a roller coaster today. They first tanked by 28.8 per cent, then recovered by around 11 per cent to 17.32 per cent and now they have recovered around 14 per cent to 3.97 per cent. The fluctuations in the IRCTC share have triggered a meme fest on Twitter. From likening IRCTC to ITC in terms of being a meme favourite to Mahabharat’s Duryodhan shouting at the top of his voice ‘ye suryasta kyu nahi ho raha’, here are some memes that have taken Twitter by storm

For the unversed, IRCTC has decided to share the revenue earned from convenience fee on e-ticketing with the Ministry of Railways on a 50:50 basis with effect from November 1, 2021.

“In compliance with the Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to be informed that Ministry of Railways vide above referred letter has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 w.e.f November 1, 2021,” IRCTC said in a latest BSE filing.

How does the IRCTC stock split impact retail investors?

Amidst the meme-fest on Twitter, founder and CEO of the online brokerage firm Zerodha Nithin Kamath apprised investors of how the IRCTC stock split would impact them. “If you had 1 share of IRCTC at a price of Rs 4,500, you will now have 5 shares at Rs 900 each – 4 new shares will be credited in 4 days after the stock split. This makes no difference in terms of the value of the stock. It isn’t cheaper just because the price is lower,” he tweeted.

Kamath further added that corporate actions (stock split, bonuses, rights issues) raise the number of shares in a company and actually reduce the price of the stock, thus making no difference to the value. He mentioned that it was akin to having a single 100 gms chocolate or 5 pieces of 20 grams each.

Meanwhile, the DIPAM Secretary has said the Ministry of Railways has withdrawn its decision of 50:50 sharing of convenience fee on e-ticketing on IRCTC. "Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," the DIPAM Secretary tweeted.

Also read: Railway ministry withdraws decision of 50% sharing of convenience fee on IRCTC

Also read: Stock Market Updates: Sensex tumbles over 600 points, Nifty below 17,700; IRCTC tanks 10%

Also read: BREAKING: Railways withdraws decision of 50% sharing of convenience fee on IRCTC