The sell-off in the railway stocks was triggered after FM Sitharaman earmarked a capex of ₹2.55 lakh crore for the Indian Railways, which is lower than industry expectations of ₹3 lakh crore.
The largecap stock, which made its share market debut on April 11, 2019, has risen more than 1,500% in the last five years.
The financing arm of the Indian Railways has declared a total dividend of ₹1,960.28 crore, which works out to 30.93% of PAT for FY23, says Shelly Verma.
The stock, which made its market debut in June last year, hit a fresh all-time high of ₹398.10 on September 5, after touching 52-week low of ₹66.90 on September 27, 2022.
The government, which currently holds 86.36% shares in IRFC, has to dilute 11.36% stake in the company to meet SEBI’s minimum public shareholding norm.
IRFC has inked a pact with IIFCL to boost cooperation in financing railway infrastructure projects with forward and backward linkages to Indian Railways sector.
