IRFC IPO Listing Today: The IPO of Indian Railway Finance Corporation (IRFC), a subsidiary of Indian Railways, will be listed on the stock market on January 29. The company had fixed the price band for the IPO at Rs 25-26 per share. Yi IPO was open from 18 to 20 January and during this time it was subscribed 3.49 times. Now the question arises as to what will be the listing of the stock in the falling market. Considering the gray market premium, it is believed that the listing of IRFC can be done with light premium. Experts are also talking about booking profits on listing gains. In the gray market, the stock of IRFC appears to be trading at a premium of 7.7-11.5 per cent, ie, 2 to 3 rupees more than the price band.
How was the response of investors
The IPO of Indian Railway Finance Corporation has got a good response from investors. This IPO has been subscribed 3.49 times. IRFC had issued 124 crore equity shares for this IPO, while it has received bids for 435 crore equity shares. The reserve position is subscribed 3.78 times for qualified institutional buyers and 2.67 times for non-institutional investors. At the same time, Reserve Porson has received 3.66 times of bids for retail investors. Railway employees have subscribed to it 43.73 times.
Short term and long term strategy
If there is a short-term strategy, investors should focus on listing gains; According to Ramachandran, co-founder and trainer of Tips to Trade, investors who have allotments should book profits on listing. After this, you should wait for a correction and then you can add it to your portfolio.
At the same time, if you want to keep shares for the long term then it can give good profits further. According to brokerage house Religare Broking, the company’s long term outlook is better. Long-term investors should invest in it. According to the brokerage house, the government will focus on infrastructure and transport. Budget allocation for railways will also increase in the coming days. In such a situation, IRFC will have better financing opportunities. The company has a strong credit rating. Financial performance of the company is also better.
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Company strength
Strategic role in the growth of Indian Railways
Strong credit rating: CRISIL: AAA / A1 + and ICRA: AAA / A1 +
Strong Financial Performance and Sound Asset Liability Management
Experienced management team
About the company
IRFC was formed in 1986 and acts as a dedicated financial arm for the Indian Railways. The company also raises funds for the railway from domestic and foreign markets. Extra budgetary expenses for the railways are arranged by the company. The schedule is an ‘A’ listed company under the IRFC Ministry of Railways. In 2017, the Union Cabinet had approved 4 more companies related to IRFC and Railways to be listed in the market.
Also Read: IRFC IPO: Should you put money in IRFC IPO? Understand important details before investing
