Shares prices of the financing arm of the Indian Railways hit a record high on Friday by 6.13 percent to Rs. 113.4 and opened at Rs. 109.
According to Reuters, Indian Railway Finance Corp plans to raise up to Rs. 2,500 crores as well as from a greenshoe option of Rs. 2,000 crores, through bonds maturing in five years and three months.
It has also been mentioned that the state-run company has invited bids from investors and bankers on 9th January.
The market cap of IRFC stands at Rs. 1.4 lakh crore and the 52-week high and low of the stock are Rs. 104.14 and Rs. 25.5 respectively. The closing price of the company’s stock was Rs. 113.4, representing a change of 1.04 percent.
Financially, the company has delivered a good profit growth of 25.3 percent CAGR over the last 5 years and it has been maintaining a healthy dividend payout of 30.7 percent.
IRFC was the first IPO of the year 2021 and made its stock market debut at its issue price. Until the first half of 2023, the company’s stocks were weak trading around its IPO price, within the range of Rs. 26 to 30, but since the second half of 2023 till now, the stock has delivered more than 250 percent returns.
As of the September quarter, FIIs hold 1.14 percent of the shares whereas DIIs hold 1.63 percent, aggregating to 2.77 percent of institutional holding. The Indian government owns 86.36 percent of IRFC and the public holds 10.88 percent of the company.
The company’s revenues from operations grew by 17.7 percent from Rs. 20,299 crores in FY22-23 to Rs. 23,892 crores in FY23-24, accompanied by an increase in profits from Rs. 6,090 crores in FY22 to Rs. 6,337 crores in FY23.
The company’s primary focus of IRFC is to meet the predominant portion of the EBR (Extra Budgetary Resources) requirement of the Indian Railways through market borrowings at the most competitive rates and terms.
IRFC has also been lending to several entities in the railway sector including Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited (KRCL), and Raitel amongst others.
Written by Shivani Singh
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