Relief for IRFC investors: Indian Railway Finance Corporation share prices surge over IPO price to record high; networth crosses Rs 41,000-cr mark

Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways.

IRFC Share Price: In a relief for Indian Railway Finance Corporation investors, the IRFC shares have surged over its Initial Public Offering (IPO) price for the first time since its listing last year. Despite the strong background, the IRFC shares had failed to yield better returns but things are changing, suggested the current market trends.

IRFC share today surged over 8.53 per cent or Rs 2.15 to close at Rs 27.35 apiece. This is a record high for IRFC shares. IRFC IPO was priced in the range of Rs 25 to Rs 26 per share. Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways. The company was set up in December 1986 for mobilizing funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways. However, the company has zero NPA according to various reports. IRFC does 45-55% funding in rail infra projects. The company gives loans at very low interest. It gives loans to the Railways against the government guarantee.

According to various reports, the company has only 37 employees but now its net worth has crossed Rs 41,000-crore mark. Due to the government exemption, the company does not need to pay any tax. The company reportedly operates out of a hotel in Delhi. IRFC's funding cost in FY22 stood at 6.42 per cent. 

Last month, the IRFC had signed an agreement with India Infrastructure Finance Company Ltd (IIFCL) to finance railway infrastructure projects.

The company's revenue from operations had increased by 51 per cent to Rs 20,302 crore between 2019-20 and 2020-22. The company's profit nearly doubled to Rs 6,090 crore in the same period.

The company had reported a profit of Rs 2,045 cr in 2017-18 and Rs 2,254 crore in 2018-19.