By Aditya Raghunath
Investing.com -- Indian Railway Finance Corporation (IRFC) will open up its Rs 4,633 crore IPO on Monday, January 18 for subscription. The price band for the shares is Rs 25-Rs 26 each.
The company has a different business model and has no peers in the country. IRFC is the borrowing arm of the Indian Railways. Its growth is inextricably linked to the growth of the railway infrastructure in India.
Companies that work with/for Indian Railways have, by and large, performed well on the bourses. Indian Railway Catering And Tourism Corp (NS: INIR ) launched its IPO with a price band of Rs 315- Rs 320 per share in October 2019. Today, its shares are trading at Rs 1,455. Rail Vikas Nigam Ltd (NS: RAIV ) is currently trading at Rs 31.85. The company’s price band for its IPO was Rs 17 – Rs 19 in April 2019.
Rail India Technical and Economic Service Limited ( RITES Ltd (BO: RITS )) made its debut in June 2018. Its price band was Rs 180-Rs 185. The stock is currently trading at Rs 266.
Most brokerages have recommended a ‘buy’ on the stock. The projected annual capital expenditure in the Railways for FY20-25 is Rs 13.7 lakh crore. These are very good prospects for IRFC, which has financed around 48% of Railways’ capex in FY20.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.