The shares of the Indian Railway Finance Corporation (IRFC) traded for more than its Initial Public Offering (IPO) issue price of Rs 26. The share price surged by 6.69% or Rs 1.75 before closing at Rs 27.90 apiece today.
The IPO of IRFC, a financing arm of the Indian Railways, opened for subscription last year from January 18 to January 20. The price band of the IPO ranged between Rs 25 and Rs 26 per share.
IRFC functions under the ministry of railways (MoR) and its business is to borrow funds from the financial markets to finance the acquisition or creation of assets. These assets are then leased out to the Indian Railways.
IRFC recorded a growth of Rs 37.90 per cent in its profit after tax (PAT) at Rs 6,090 crore in 2021-22. In the preceding fiscal, the company posted its PAT at Rs 4,416 crore, according to a statement by IRFC.
Meanwhile, the revenue of IRFC from operations for 2021-22 saw a growth of 28.71 per cent and was recorded to be Rs 20,298.27 crore. The revenue was Rs 15,770.22 crore in the previous year. The revenue from operations for the fourth quarter of 2021-22 was Rs 5,931.12 after it grew by 16.39 per cent from Rs 5,095.81 in the third quarter.
The net worth of IRFC is Rs 41,000 crore in FY22 and the funding cost was recorded to be 6.42 per cent, according to Moneycontrol.
“The company continues to raise funds at the most competitive rates and terms, both from the domestic and overseas financial markets, which has helped to keep the cost of borrowings low," an IRFC statement read.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
