IRFC share price rises amid anticipation of interim dividend decision
IRFC shares edge higher ahead of board meeting on dividend decision
Indian Railway Finance Corporation (IRFC) shares traded higher in early trade on March 17 as investors awaited the board’s decision on a second interim dividend for FY25.
Key Takeaways
- IRFC stock gained 0.25% in early trading as investors anticipated the board’s meeting on March 17 to finalize the second interim dividend for FY25.
- IRFC has fixed March 21, 2025, as the record date, meaning shareholders holding the stock by this date will qualify for the dividend payout.
- While IRFC shares have fallen 22% in 2025 and 27% over six months, the stock has delivered a multibagger return of 330% in the last two years.
IRFC Shares Rise Ahead of Dividend Decision
IRFC shares opened slightly higher by 0.25% at Rs 118 on the BSE, compared to Thursday's closing of Rs 117.70. As the trading session progressed, the stock gained further momentum, rising 1.6% to an intraday high of Rs 119.70. This increase pushed IRFC’s market capitalization to Rs 1.55 lakh crore, reports India Today.
Indian Railway Finance Corp (INID) share price dynamics (2022 - Mar 2025) Source: TradingView
The rise in IRFC’s stock price comes as investors closely watch the outcome of the company's board meeting, where a decision on the second interim dividend for FY25 is expected. The company had earlier announced in a regulatory filing on March 10 that its board would meet on March 17 to consider the dividend payout.
Dividend Record Date Set for March 21
IRFC has officially scheduled March 21, 2025, as the record date for the second interim dividend, meaning that shareholders holding the stock as of this date will qualify for the payout. Under the T+1 settlement system, which has been implemented in Indian stock markets, the ex-date and record date coincide.
This means that investors looking to receive the dividend must ensure they purchase IRFC shares by March 20, as any transactions made on or after the record date will not be eligible. The exact dividend amount will be determined based on the board’s final decision during today’s meeting, and investors are eagerly anticipating the outcome.
Stock Performance: Short-Term Weakness, Long-Term Strength
Despite the positive sentiment around the dividend, IRFC shares have struggled in recent months. The stock is down 3% in the last month, 22% since the start of 2025, and 27% over the past six months. The decline has been attributed to profit booking and broader market conditions.
However, long-term investors have been rewarded handsomely. Over the past two years, IRFC has delivered a stellar 330% return, positioning itself as one of the top-performing railway stocks. This long-term strength continues to attract institutional and retail interest despite short-term headwinds.
IRFC’s stock gained slightly as the market awaited the board’s dividend decision. While the company has faced recent declines, its strong long-term performance keeps investors optimistic. The final dividend announcement later today will be a key factor influencing short-term sentiment.
Additionally, Tata Motors stock gained 4% on March 12 after the company’s CFO provided optimistic guidance on Jaguar Land Rover (JLR) and domestic operations.
