Indian Railway Finance Corporation (IRFC) shares hit a yearly low of approximately $1.24 (₹103.20), declining nearly 18% year-to-date. The government’s 4% stake reduction, conducted via an Offers For Sale (OFS), failed to attract full institutional demand, weakening investor sentiment. An analyst previously forecasted the stock could fall toward the $1.10-$1.12 (₹90-92) level.
Shares of state-owned Indian Railway Finance Corporation (IRFC) closed Thursday’s trading session at a yearly low. The railway financing asset has dipped nearly 18% year-to-date and has remained in bearish territory for over a year.
The recent decline occurred after the government announced it would reduce its stake in the company from 86.36% to 82.36%. The institutional investor portion of this Offers For Sale did not get fully booked and lacked oversubscription.
This weak demand contributed to the stock’s price moving lower. There are concerns the share price could fall below the $1.20 (₹100) mark, revisiting its December 2023 lows.
A previous analysis predicted IRFC shares were en route to falling toward the $1.10 to $1.12 (₹90 to ₹92) level. The stock’s price has mostly traded sideways or declined since that projection was made over a year ago.
Anshul Jain, Head of Research at Lakshmishree, is the analyst who made the specific forecast. “Given the prevailing technical indicators, the stock is expected to decline further, with potential downside targets of ₹90 and ₹92.”
