Incorporated in 1986, the Indian Railway Finance Corporation (IRFC) is a public-sector enterprise that’s wholly-owned by the Government of India. IRFC is primarily engaged in financing the acquisition of rolling stock assets, leasing of railway infrastructure property, and lending to entities below the Ministry of Railways (MOR). Being the borrowing arm of Indian Railways, IRFC is accountable to raise funds for MOR that’s required to acquire rolling stock assets (wagons, vans, electric multiple units, locomotives, coaches), its enhancement, growth, and property management.
It follows a monetary leasing model to finance rolling stock assets procurement for a lease interval of 30 years. In fiscal 2019, the precise capital expenditures by the Indian Railways have been Rs. 1,334 billion, out of which, IRFC financed Rs. 525.35 bn accounting for 39.34% expenditures.
Competitive strengths
- Strategic position in Indian Railways progress.
- Sound credit rating i.e. CRISIL AAA/A1+ and ICRA AAA/A1+.
- Competitive cost of borrowing.
- Strong monetary efficiency.
- Sound asset-liability management.
- Experienced administration team.
Company Promoters:
The President of India appearing via the Ministry of Railways (MoR) is the promoter of the corporate.
Company Financials:
| Particulars | For the year/period ended (Rs in million) | |||
|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 29,19,865.81 | 27,55,041.29 | 20,64,382.95 | 16,14,510.41 |
| Total Revenue | 73,848.29 | 1,34,210.90 | 1,09,873.55 | 92,078.39 |
| Profit After Tax | 18,868.41 | 31,920.96 | 21,399.33 | 20,014.60 |
Objects of the Issue:
The net IPO proceeds are proposed to be utilized for the following objects:
- To increase firm’s equity capital base to fulfill business future progress necessities.
- To meet common company functions.
IRFC IPO Details
| IPO Opening Date | Jan 18, 2021 |
| IPO Closing Date | Jan 20, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | ₹25 to ₹26 per equity share |
| Market Lot | 575 Shares |
| Min Order Quantity | 575 Shares |
| Listing At | BSE, NSE |
| Issue Size | 1,782,069,000 Eq Shares of ₹10 (aggregating as much as ₹4,633.38 Cr) |
| Fresh Issue | 1,188,046,000 Eq Shares of ₹10 (aggregating as much as ₹[.] Cr) |
| Offer for Sale | 594,023,000 Eq Shares of ₹10 (aggregating as much as ₹[.] Cr) |
IRFC IPO Tentative Timetable
The IRFC IPO open date is Jan 18, 2021, and the close date is Jan 20, 2021. The issue could listing on Jan 29, 2021.
| IPO Open Date | Jan 18, 2021 |
| IPO Close Date | Jan 20, 2021 |
| Basis of Allotment Date | Jan 25, 2021 |
| Initiation of Refunds | Jan 27, 2021 |
| Credit of Shares to Demat Account | Jan 28, 2021 |
| IPO Listing Date | Jan 29, 2021 |
IRFC IPO Lot Size
The IRFC IPO market lot size is 575 shares. A retail-individual investor can apply for as much as 13 lots (7475 shares or ₹194,350).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 575 | ₹14,950 |
| Maximum | 13 | 7475 | ₹194,350 |
IRFC IPO Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 86% |
IRFC IPO Prospectus
Company Contact Information
Indian Railway Finance Corporation Limited
UG-Floor, East Tower, NBCC Place
Bisham Pitamah Marg, Pragati Vihar, Lodhi Road
New Delhi – 110 003
Phone: 91 (11) 2436 9766
Email: dgmcs@irfc.nic.in
Website: http://www.irfc.nic.in
IRFC IPO Registrar
KFintech Private Limited
Selenium Building, Tower-B, Plot No 31 & 32,
Financial District,Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone: 1-800-3454001
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/
IRFC IPO Lead Manager(s)
- HSBC Securities & Capital Markets Pvt Ltd
- ICICI Securities Limited
- IDFC Bank Limited
- SBI Capital Markets Limited
IRFC IPO FAQs
- What is the IRFC IPO?
IRFC IPO is a main-board IPO of 1,782,069,000 equity shares of the face worth of ₹10 aggregating as much as ₹4,633.38 Crores. The concern is priced at ₹25 to ₹26 per equity share. The minimum order quantity is 575 Shares.The IPO opens on Jan 18, 2021, and closes on Jan 20, 2021.KFintech Private Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE. - How to apply in IRFC IPO through Zerodha?