IRFC Declares 2nd Interim Dividend: Bounces Back From Rs 108 Lows; Perfect Entry Point Before March 21?

he specific financial body of Indian Railways is the Indian Railway Finance Corporation (IRFC), a Navratna Public Sector Enterprise. The main purpose of IRFC is to raise funds from domestic and foreign financial markets in order to finance the purchase of rolling stock assets, including locomotives, coaches, waggons, and other equipment, as well as assets related to the railway system. Additionally, it lends money to other ministries within the Ministry of Railways (MoR), such as IRCON and Rail Vikas Nigam Limited (RVNL). IRFC is registered with the Reserve Bank of India (RBI) as a Non-Banking Finance Company (NBFC) under the Infrastructure Finance Company category. Following the Board's announcement of the second interim dividend for FY25, which is set for Friday, March 21, 2025, as the record date, IRFC's shares closed Tuesday 2.85% higher on the NSE at Rs 122.15 per share, with a market capitalisation of Rs 1.59LCr.

IRFC Dividend

"This is to inform that pursuant to Regulation 30, 42 and 43 of SEBI (LODR) Regulations, 2015 as amended from time to time and other applicable Regulations, the Board of Directors of the Company at its meeting held on Monday, 17th March 2025 inter alia, considered and approved the declaration of Second Interim Dividend of Rs. 0.80/- per equity share of Rs. 10/- each for the financial year 2024- 25," said PSU company in a stock exchange filing on 17th March.

IRFC Dividend Record Date

"Further, as informed vide letter dated 10th March, 2025, the "Record date" for determining eligibility of shareholders for payment of the said Second Interim Dividend, as declared by the Board is Friday, 21st March 2025. The dividend will be paid in the account of the shareholder(s) or the dividend warrant(s) in respect thereof will be dispatched within thirty (30) days from the date of declaration of Second interim dividend. Shareholder(s) are kindly requested to update/ submit details for TDS on dividend to Registrar and Transfer Agent of the Company at irfc@beetalfinancial.com on or before Friday, 21st March 2025. No communication on the tax determination/deduction of tax at lower rates shall be entertained after Friday, 21st March 2025," informed IRFC to stock exchanges.

Important for IRFC Investors: How to Handle Higher Dividend Tax Deduction?

"It is further informed that in case tax on dividend is deducted at a higher rate in the absence of requisite details/documents, refund of the excess tax paid may still be claimed by shareholders at the time of filing of income tax return. However, no claim shall lie against the Company for such taxes deducted. Further, shareholders will be able to see the credit of TDS in Form 26AS, which can be downloaded from their e-filing account at Income Tax portal," confirmed IRFC in a regulatory filing on Monday.

IRFC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking commented that "IRFC is showing early signs of recovery after a prolonged downtrend and is currently trading around ₹121. The recent bounce from the ₹108 support level indicates renewed buying interest, with the stock recovering nearly 12% from this level, suggesting growing bullish sentiment. This rebound is accompanied by a significant increase in trading volume, adding further strength to the bullish case."

"Currently, IRFC is facing resistance at its 20-day EMA, and a decisive close above this level would reinforce the bullish outlook. If the stock sustains above this resistance, it has the potential to move towards the ₹130 and ₹140 levels in the short term. On the flip side, immediate support is seen near ₹118, and a breakdown below this level could trigger selling pressure, leading to further downside," the analyst added.

"To manage risk effectively, traders can place a stop-loss at ₹115. Monitoring price action and volume will be crucial to confirming the potential trend reversal before taking fresh positions. A sustained breakout above the 20-day EMA will provide additional confidence in the stock's upward trajectory," Mandar Bhojane further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.