IRFC shares rally to hit record high; trade above IPO issue price
Premium- Indian Railway Finance Corporation Ltd (IRFC) shares rallied more than 8% to hit a record high of ₹28.7
Shares of Indian Railway Finance Corporation Ltd (IRFC) rallied more than 8% to hit a record high of ₹28.7 apiece on the BSE in Monday's afternoon deals, with the stock trading above its initial public offering (IPO) issue price of ₹26.
The public issue of IRFC was open for subscription last year from 18-20 January, 2021 with a price band of ₹25- ₹26. The company's shares made their market debut on January 29, 2021. IRFC shares are up about 23% in 2022 so far.
IRFC reported a 14% increase in its net profit at ₹1,714 crore in the second quarter ended September 30, 2022 as compared to earning a profit of ₹1,501 crore in the same quarter of the previous fiscal.
The revenue from operations during the quarter also grew by nearly 24% to ₹5,810 crore as against ₹4,690 crore reported in the same period of last year. Meanwhile, the company's net worth stood at ₹43,549 crore and Assets Under Management (AUM) at ₹4,39,070 crore as on September 30, 2022.
The board of the company also approved an interim dividend of 8 per cent of face value of ₹10 each, that is ₹0.80 per share for 2022-23. The cumulative funding to the Indian railway sector by IRFC crossed ₹5.05 lakh crore mark by the end of the Q2 FY23.
Addressing the 35th annual general meeting (AGM) of the IRFC, Chairman and Managing Director, Amitabh Banerjee said, "The IRFC reported a strong financial performance during the year under review (financial year 2021-22), with all-time high revenue and profits. The total capital outlay (capital expenditure) of the Ministry of Railways for 2021-22 was ₹1.9 lakh crore, of which disbursement against the same was significant at ₹60,683 crore, which constituted 31.4% of the total capital outlay for 2021-22."
IRFC is a dedicated market borrowing arm of the Indian Railways and is wholly-owned by the Government acting through the Ministry of Railways. Its primary business is financing the acquisition of rolling stock assets and project assets of the Indian Railways and lending to other entities under the ministry.
