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IRFC IPO opens today. Check price band, closing date - Should you invest? The initial public offering (IPO) of Indian Railway Finance Corporation (IRFC) worth about Rs 4,600 crore will hit the market today on January 18.
The initial public offering (IPO) of Indian Railway Finance Corporation (IRFC) worth about Rs 4,600 crore will hit the market today on January 18. The Union Cabinet had in April 2017 approved the listing of five railway companies. Four of them  IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd, and Indian Railway Catering and Tourism Corp have already been listed.Â
Synopsis
Most brokerages say the IRFC IPO is attractively priced and can be a good bet for conservative long-term investors, given the company s low-risk profile and consistent earnings visibility.
Agencies
The IPO of IRFC the dedicated market borrowing arm of the Indian Railways includes a fresh issue of up to 1,188,046,000 shares.
NEW DELHI: The Rs 4,633-crore IPO of Indian Railway Finance Corporation (IRFC) kicked off on Monday. Most brokerages advised investors to subscribe to the issue with a long-term investment horizon.
They said the IPO is attractively priced and can be a good bet for conservative long-term investors, given the company s low risk profile and consistent earnings visibility. That said, expansion drivers for return on equity (RoE) or margins are missing, analysts said. They expect good returns from the stock only in the long run.
NEW DELHI: The Rs 4,633 crore IPO by Indian Railway Finance Corporation (IRFC), hitting on Monday, has many brokerages recommending subscribe on it with long-term gains.
Analysts said the IPO looks attractively priced and can be a good bet for conservative long-term investors, as expansion drivers for return on equity (RoE) or margins are missing, even as the company is seen reporting consistent growth numbers.
Choice Broking said that valuation at price to book value (P/BV) of 1 time looks attractive for long-term conservative investors, considering the company’s strong profitability growth of 26.3 per cent during FY18-FY20, double-digit return on equity (RoE) of 12.2 per cent in FY21 and low risk profile of the business with zero gross non-performing assets (NPAs).