Quote on IRFC IPO By Jyoti Roy, Angel Broking
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Below are Views On Quote on IRFC IPO By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
The Indian Railway Finance Corporation (IRFC) initial public offer (IPO) has been subscribed 3.49 times by the time of the closing of the issue. While the QIB portion was oversubscribed 3.78 times the NIB portion was oversubscribed by 2.66 times. Retail and the employee categories were oversubscribed by 3.53 times and 43.73 times respectively. Overall the issue was a success considering the size of the IPO. While listing gains are expected to be muted we remain positive on the long term growth prospects of the company. At the higher end of the price band the stock would be trading at P/BV of 1.0x fully diluted post issue book value of Rs. 26.6 per share. We expect the company to post strong growth driven by capex by Indian railways along with stable margins due to cost plus mode.
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