State-owned Indian Railway Finance Corporation (IRFC) had a lacklustre stock market debut on Friday with its stock slipping as much as 6.4 per cent over the issue price amid continued selling in the overall market.
Shares ended at Rs 24.8, down 4.6 per cent over IPO price of Rs 26. They hit a high of Rs 25.8 and a low of Rs 24.3 on the NSE, where Rs 957 crore worth of shares changed hands.
Experts said the fall in the markets weighed on IRFC’s listings. The company’s IPO closed on January 20. Since then, the benchmark indices have declined more than 7 per cent.
The demand for IRFC’s Rs 4,500 crore IPO was relatively muted. It was subscribed 3.5 times.
Through the IPO, the centre raised Rs 1,500 crore by divesting 13.6 per cent stake. The IPO also consisted of fresh fund raise of Rs 3,000 crore. At current market price, IRFC has market capitalisation of Rs 32,410 crore—almost equal to its book value.
IRFC is responsible for financing about 30-45 per cent capex of the Indian Railways. It is mainly engaged in financing the acquisition of rolling stock assets and other assets. It also lends to other entities under the Ministry of Railways.
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