The company is engaged in raising financial resources for expansion and running through capital markets and other borrowings. The company is primarily owned by the Government of India, with administrative control held by the Ministry of Railways.
With a market capitalization of Rs 1.27 lakh crores, the shares of Indian Railway Finance Corporation Ltd closed at Rs 97.6 per share, down by approximately 1.26 percent from the previous closing share price of Rs 98.85.
At present, the Indian government owns 86.36% of Indian Railway Finance Corporation Ltd. The public is required to hold a mandatory 25% of the company’s outstanding equity shares. To comply with the Minimum Public Shareholding (MPS) rule, promoters who hold more than 75% of the shares must mandatorily divest additional shares to the public.
During the current fiscal year, the government intends to sell a portion of its ownership in the state-owned Indian Railway Finance Corp (IRFC) through an offer for sale (OFS). To comply with Sebi’s minimum public shareholding (MPS) norm, the government will reduce its 11.36 percent stake in IRFC.
Indian Railway Finance Corporation Ltd’s recent shareholding pattern, The Promoters of the company own 86.36% percent while Retail shareholders own a 10.88 percent stake in the company and Domestic institutional investors own 1.63 percent.
Looking into Indian Railway Finance Corporation Ltd’s performance, revenue increased by 16 percent from Rs 5,810 Crore in FY2021-22 to Rs 6,767 Crore in FY2022-23. During the same duration, net profit decreased 9 percent from Rs 1,550 crore to Rs 1,714 crore.
The company has assets under management (AUM) as of 30th September 2023 stand at INR 4,66,171.88 crore.
In the Union Budget for FY24, the Government announced capex worth Rs 10 lakh crores, which marked a substantial increase of 37.40% compared to the previous year, The Indian Railways received the highest-ever capital outlay of H 2.40 lakh crores, which is further expected to bolster India’s regional connectivity.
Written by:- Abhishek Singh
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