After being mute for almost two years after its listing, shares of Indian Railway Finance Corporation have been on an incredible bull run at the bourses this year. The stock, along with other railway stocks have given multi-bagger return to investors this year. Just in the past 30 days, the IRFC share price has surged up over 50%.
The Investment: The IRFC IPO was opened for subscription in January 2021. The price band for the IPO was ₹25-₹26. To invest in the IPO you would have had to purchase at least one lot consisting of 575 shares, which would have cost you around ₹15,000. Fast forward to today, with the IRFC share price standing at ₹81, those shares would now be valued at approximately ₹46,750.52.
Background: The Indian Railway Finance Corporation is a dedicated market borrowing arm of the Indian Railways. Its primary role is to finance the acquisition of rolling stock assets and project assets of the Indian Railways and lend to other entities under the Ministry of Railways, Government of India.
Railway stocks, including IRFC, have witnessed a significant boost following reports of a massive rail and ports corridor plan linking India with the Middle East. This ambitious initiative was unveiled during the G20 Summit in New Delhi and involves key global players aiming to establish robust connections spanning data, railway networks, ports, and energy infrastructure.
Price Action: IRFC’s share price was up 0.57% to trade at ₹79.35 on Thursday afternoon.
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