Shares of Indian Railway Finance Corporation (IRFC), a dedicated financing arm of the Indian Railways, will be listed on BSE and NSE on Friday. According to multiple reports, IRFC is losing sheen in grey market, as the premium has since fizzled out. The IRFC listing price will not go beyond Rs 30-31. Dealers are blaming sour sentiments in broader market and uncertainty ahead of the budget for this.
Reports suggest that investors should book the listing gains in IRFC and can again re-enter.
The IRFC stock is likely to pick up after Budget as Finance Nirmala Sitharaman is expected to announce some big-ticket projects in rail infra sector. The budget will be presented on February 1.
Meanwhile, the government will get Rs 1,544 crore from the IPO of Indian Railway Finance Corporation. The Rs 4,633 crore IPO of IRFC comprised a fresh issue of up to 118.80 crore shares and an offer for sale (OFS) of 59.4 crore shares. Shares of the primary market issue of the first government-owned non-banking financial company (NBFC) were sold at a price band of Rs 25-26 apiece. It was subscribed 3.49 times.
It is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. Its primary objective is to meet the predominant portion of 'extra budgetary resources' requirement of the Indian Railways through market borrowing at the most competitive rates and terms.
IRFC is the first-ever non-banking financial company (NBFC) to go public in 2021.
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