Shares of Indian Railways Finance Corporation (IRFC) surged nearly 18 per cent to hit a record high on January 15. The stock is now up nearly 400 percent from its IPO price of Rs 26. The multibagger stock debuted at issue price in 2021 and was trading around in the Rs 26 – 30 range till April 2023. However, since then, the stock has more than tripled and is continuing to hit fresh highs.
The government’s focus on the sector, fresh capital infusion and an expected strong December quarter are among the reasons for the rally in the IRFC stock, analysts said.
The stock, which listed in 2021, is now up nearly 400 percent from its issue price of Rs 26, with most of the gains coming in over the last year.
IRFC IPO was priced in the range of Rs 25 to Rs 26 per share. In the last 1 month, shares of IRFC has given over 33.63 percent return, 289.38 percent in last 6 months and 281.75 percent in the last one year.
Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways.
The company was set up in December 1986 for mobilizing funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways. However, the company has zero NPA according to various reports. IRFC does 45-55% funding in rail infra projects. The company gives loans at very low interest. It gives loans to the Railways against the government guarantee.
IRFC is yet to come out with its Q3 results for FY24. In its Q2 FY24, IRFC had reported its profit at Rs 1,550 crore as compared to Rs 1,714.3 crore in the corresponding period last year, a profit drop of 9.6%. Revenue from operations in Q2 was at Rs 6,766.3 crore compared to Rs 5,809.8 crore in the previous year, witnessing growth of 16%.
The Railway PSU had announced an interim dividend of Re 0.80. “Pursuant to Regulation 30 and 43 of SEBI (LODR) Regulations, 2015, as amended from time to time this is to inform that the Board of Directors have declared an Interim Dividend of Rs 0.80 /- per equity share of Rs 10/- each” the company had said in an exchange filing. Previously, in September 2022, IRFC had paid a dividend of Rs 0.63 per share. In 2021, IRFC paid dividends to its shareholders on two occasions — Rs 0.77 in November and Rs 1.05 in February.
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