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Indian Railway Finance Corporation debuts at discount, what should investors do?

The share is worth holding long term, at least for three to four quarters, says Gaurav Garg of CapitalVia Global Research. He expects IRFC to give good returns.

January 29, 2021 / 01:37 PM IST
 
 
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Indian Railway Finance Corporation, the subsidiary of Indian Railways, disappointed investors as shares listed at a four percent discount to issue price on January 29.

The weak market conditions and lower-than-expected subscription to its initial public offering (IPO) weighed on sentiment. The equity benchmarks have corrected around 6 percent in the last five consecutive sessions.

The stock was trading at Rs 25.55, down 1.73 percent from its issue price of Rs 26 at 1246 hours after opening 3.8 percent lower at Rs 25 on the BSE.

Experts say the financing arm of Indian Railways is a long-term investment and investors should hold shares with that perspective.