IRFC Share Price: There is news of relief for the investors of Indian Railway Finance Corporation (IRFC). For the first time the share prices of IRFC have gone above the IPO price. IRFC shares were listed in the market last year. Despite strong fundamentals, IRFC shares had failed to generate good returns, however, going by the current market trends, things seem to be changing now.
Shares of IRFC saw a jump of up to 7.07 percent today i.e. on the morning of 17th November and at the time of writing the news, its shares were trading at Rs.28. It had also touched a record high of Rs 28.65 during morning trade.
The IPO price of ERFC was fixed at Rs 25 to 26 per share. The Indian Railway Finance Corporation (IRFC) is a dedicated funding body for the Indian Railways. This company was established in December 1986 so that money can be raised from India and abroad for Indian Railways. According to various reports, the NPA of this company is zero. IRFC funds 45 to 55 percent for railway infrastructure projects. IIFC gives loan at very low interest rate. In lieu of government guarantee, this company provides loans to the railways.
Only 37 employees in IRFC and net worth beyond 41,000 crores
According to various reports, only 37 employees work in IRFC, but its net worth has now crossed Rs 41,000 crore. Due to the exemption from the government, this company does not even have to pay tax. The operation of this company is done from the hotel of Delhi. IRFC’s funding cost in FY22 was 6.42 per cent.
Agreement was signed with IIFCL last month
Last month, IRFC had entered into an agreement with India Infrastructure Company Limited (IIFCL) to finance railway infrastructure projects. IRFC’s revenue from operations increased by 51 percent to Rs 20,302 crore during 2019-20 and 2020-22. The company’s profit also almost doubled to Rs 6,090 crore during this period.