This railways related stock surpasses Tata Steel, Jio Fin, VBL in m-cap

With market cap of Rs 1.74 trillion, IRFC now stands at 41st position in overall market cap ranking on Monday, the BSE data shows.

Indian Railway Finance Corporation (IRFC) today surpassed steel major Tata Steel, Reliance group company Jio Financial Services and Varun Beverages (VBL) in market capitalisation (market cap) ranking as stock of the state-owned financial institution rallied 19 per cent on the BSE in Monday’s intra-day trade.

In past two trading days, the market price of IRFC has zoomed 26 per cent amid heavy volumes. As many as 331.98 million equity shares representing 2.5 per cent of total equity of IRFC changed hands on the NSE and BSE till 11:42 AM. In the past six months the stock of the state-owned financial institution company has zoomed 310 per cent.

A sharp rally in stock price of the company has seen the market capitalisation (market cap) of IRFC reach Rs 1.76 trillion. Currently, IRFC's market cap stands at Rs 1.74 trillion; the BSE data shows. The company now stands at 41st position in overall market cap ranking.

IRFC was set up as the dedicated funding arm of the Indian Railways (IR) for mobilizing funds from domestic as well as overseas Capital Markets. IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.

It aims to be one of the leading Financial Service Companies in the country, for raising funds from the capital market at competitive cost for Railway infrastructure augmentation, duly ensuring that the Corporation makes optimum profits from its operations.

Indian Railways are now poised to take transformational leap in the Amrit Kaal of the post-Independence period and fulfill the vision of 'Viksit Bharat' which includes modern, faster, available on demand passenger services and facilities, a substantial share in freight cargo with ancillary services in logistics parks and domestic industry driven rail infrastructure of highest standards.

A record capex target of Rs 2.60 trillion in 2023-24, up 65.6 per cent when compared to 2022-23, is targeted to initiate the necessary changes for this vision, across the entire network. Achieving India's commitment of net zero carbon by 2070 will rest in part on more rail-bound passenger and cargo movement, IRFC said in FY23 annual report.

Over the years, IRFC's contributions to the Indian Railway sector have been substantial, with cumulative funding surpassing the significant milestone of Rs 5.5 trillion. This remarkable achievement is further bolstered by an impressive Asset Under Management (AUM) figure of Rs 4.66 trillion as of March 31, 2023. With a focused approach aimed at supporting the expansion and modernization of Indian Railways, IRFC remains committed to making the railway network future-ready.

IRFC's role in augmenting the annual plan outlay of Indian Railways by mobilizing funds from diverse financial sources, forming part of Extra Budgetary Resources (EBR) funding, has been commendable. With its robust financial position, unwavering commitment, and strategic vision, IRFC is well-positioned to drive the future growth and success of the Indian Railways and support infrastructure, ultimately fostering progress and prosperity for the nation, the company said.