Indian Railway Finance Corporation debuts at Rs 25, a 4% discount to IPO price
The listing price was along expected lines given the weak equity market conditions, falling premium in the grey market and lower-than-expected subscription figures.
January 29, 2021 / 12:37 PM IST
Indian Railway Finance Corporation share debuted at a discount to its issue price on the BSE on January 29. The stock opened at Rs 25 on the exchange against the IPO price of Rs 26 per share.
On the National Stock Exchange, the stock listed with a 4 percent discount at Rs 24.90.
The listing price was on expected lines, given the weak equity market conditions, the falling premium in the grey market and lower-than-expected subscription figures.
The Sensex and Nifty50 have fallen more than 6 percent in the last five consecutive sessions following consistent FII outflow, a face-off between Indian and Chinese troops along the LAC in Sikkim and volatility in the run-up to the Union Budget to be presented on February 1.
The financing arm of Indian Railways raised Rs 4,633 crore through its public issue, which was subscribed 3.49 times during January 18-20. The company will utilise fresh issue proceeds for future capital requirements.
It was the first IPO of the year 2021 followed by the launch of Indigo Paints, Home First Finance Company and Stove Kraft issues.
Incorporated in 1986, IRFC follows a financial leasing model to finance the acquisition of rolling stock assets, which includes locomotives, coaches, wagons, trucks, flats, electric multiple units, containers and cranes.
IRFC is also into leasing railway infrastructure assets and national projects of the Government of India (Project Assets) and lending to other entities under the Ministry of Railways.
The company reported a revenue growth at a CAGR of 21 percent during FY18-FY20 while profit increased by 26 percent CAGR. In FY20, IRFC reported profit of Rs 3,192 crore on revenue of Rs 13,421 crore.