IRFC shares may get focus, amid raising funds via bonds and interim dividend announcement
The company received bids worth Rs 4,985 crore from investors but retained only Rs 1,415 crore, as it was expecting lower rates, sources said.
IRFC shares may get focus, amid raising funds via bonds and interim dividend announcement
Railway Miniratna PSU, Indian Railway Finance Corporation (IRFC) has raised Rs 1,415 crore through bonds maturing in 15 years at a coupon rate of 7.14 percent, according to sources.
Intially it was looking to raise Rs 3,000 crore, with a base issue of Rs 500 crore and a green shoe option of Rs 2,500 crore. The bonds were rated ‘AAA’ by domestic credit rating agencies CRISIL, ICRA, and CARE.
The company received bids worth Rs 4,985 crore from investors but retained only Rs 1,415 crore, as it was expecting lower rates, sources said.
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Market participants noted that IRFC was aiming for rates similar to those at which REC raised funds last week. However, investors particularly long-term ones were unwilling to offer such rates, leading IRFC to raise only Rs 1,415 crore. The Board of Directors has declared an Interim Dividend of Rs 0.8/- per equity share of Rs 10/- each.”
Additionally, the company affirmed that the dividend would be credited to eligible shareholders within 30 days of the record date. IRFC share price closed in red, down 0.74 percent, at Rs 147.35, on November 11 on BSE. The company stood at a market capitalization of Rs 1,92,564.44 crore.
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