Indian Railway Finance Corporation shares fall 4.4% to close at Rs 24.85 on debut
Shares hit an intraday high of Rs 25.80 and a low of Rs 24.30, with volumes of over 2.62 crore shares.
January 29, 2021 / 06:30 PM IST
Indian Railway Finance Corporation (IRFC) shares closed at a discount of 4.42 percent to the issue price amid weak market conditions on its debut on January 29.
The stock ended the session at Rs 24.85 against the issue price of Rs 26 on the BSE after hitting an intraday high of Rs 25.80 and a low of Rs 24.30, with volumes of over 2.62 crore shares. The opening price was Rs 25.
On the National Stock Exchange, IRFC shares fell 4.62 percent to close at Rs 24.80, with volumes of more than 38.19 crore equity shares.
The financing subsidiary of the Indian Railways raised Rs 4,633 crore via the public issue last week. The proceeds from the fresh issue will be utilised for future capital requirements, IRFC has said.
"IRFC is worth holding long term, ie for at least three to four quarters and I expect IRFC to give impressive returns," Gaurav Garg, Head of Research at CapitalVia Global Research, told Moneycontrol.
Indian Railway Finance Corporation debuts at discount, what should investors do?
IRFC has close to zero NPAs and the current P/E which is 7.64 is attractive as the business might do well for the long term, he said, adding IRFC may be in focus in Budget 2021, as allocation for railways might give a pleasant surprise.
It is registered with RBI and is the dedicated market borrowing arm for Indian Railways. The company is in the business of financing the acquisition of rolling stock assets, leasing of railway infrastructure assets and national projects of the government of India.