IRFC IPO-Indian Railway Finance Corporation IPO is ready to hit the market on 18 January 2021. the company is coming with a massive issue size of ₹4,633.38 Crores.
Also read: IPO List 2021: a complete list of IPOs in 2021
Indian Railway Finance Corporation Limited
IRFC is a Public Sector Undertaking (PSU) wholly-owned finance by the Government of India acting through the Ministry of Railways. The company is registered with the Reserve Bank of India as a systematically important NBFC and is classified under the category of an “Infrastructure Finance Company”. IRFC is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example, locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds, and other items of rolling stock, leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the Ministry of Railways.
The actual capital expenditure of the Indian Railways was ₹133,400 crore in FY2019 and IRFC financed ₹52,535 crores accounting for 39.38% of the actual capital expenditure. In FY2019, IRFC was responsible for financing 82% of the Indian Railway’s total rolling stock through a financial leasing model with a leasing period typically spanning 30 years.
Also read: IPO List, current-ongoing-listed IPOs
Objective of the Issue
- To augment the company’s equity capital base to meet business future growth requirements.
- To meet general corporate purposes.
Competitive strength
- Strategic role in Indian Railways growth.
- Sound credit rating i.e. CRISIL AAA/A1+ and ICRA AAA/A1+.
- Competitive cost of borrowing.
- Strong financial performance.
- Sound asset-liability management.
- Experienced management team.
Basic details about the company
| Full name | Indian Railway Finance Corporation Limited |
| Sector | Finance |
| Industy | Finance-NBFC |
| Company Website | www.irfc.nic.in |
Dates to remember
| IPO Open | 18 January 2021 |
| IPO Close | 20 January 2021 |
| Basis of Allotment | 25 January 2021 |
| Refunds date | 27 January 2021 |
| Credit to Demat Account | 28 January 2021 |
| Listing Date | 29 January 2021 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹4,633.38 Crores |
| Number of shares offered | 1,782,069,000 Shares |
| Face value | ₹10 per equity share |
| Price band | ₹25-₹26 per equity share |
| Retail portion | 35% |
| Lot size | 575 Nos |
| Minimum application | 1 lot – 575 shares |
| Maximum application | 13 lot – 7475 shares |
| Minimum application amount | ₹14,950 |
| maximum application amount | ₹194,350 |
| Listing Exchange | BSE, NSE |
Category wise Break up
Anchor: 53,45,63,010 Shares = 1,389.86 Crores
QIB: 35,63,75,340 Shares = 926.58 Crores
NII: 26,72,81,505 Shares = 694.93 Crores
RII: 62,36,56,845 Shares = 1621.51 Crores (Lot size: 575 = 10,84,621 Forms)
Empl. Quota: 1,92,300 Shares = 00.50 Crores
Total Issue: 1,78,20,69,000 Shares = 4,633.38 Crores.
Financial summary
| IRFC’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 9,207.8 | 10,987.4 | 13,421.1 | 7,384.8 |
| Expenses | 6,675.9 | 8,232.0 | 10,229.0 | 5,498.0 |
| Net income | 2,002.3 | 2,140.1 | 3,191.5 | 1,887.3 |
| Margin (%) | 21.7 | 19.5 | 23.8 | 25.6 |
Valuation of IRFC (as of FY2020)
| Earnings Per Share (EPS) | ₹3.40 |
| Price/Earnings (PE ratio) | 7.35 – 8.23 |
| Return on Net Worth (RONW) | 11.57% |
| Net Asset Value (NAV) | ₹25.50 per share |
Company Promoters
The President of India, acting through The Ministry Of Railways, Government Of India
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 86% |
IRFC IPO Lead Managers
- SBI Capital markets Ltd
- ICICI Securities Ltd
- IDFC Securities Ltd
- HSBC Securities and Capital markets Ltd
Registrar of IRFC IPO
KFin Technologies Private Limited
Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: einward.ris@kfintech.com
Website: www.kfintech.com
IRFC Contact Details
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 2290 0600
Email: cs@railtelindia.com
Website: www.irfc.nic.in
IRFC IPO Subscription Status
| Category | Day 1 | D 2 | D 3 |
| QIB | 0.00x | 0.00x | 3.78x |
| HNI | 0.09x | 0.24x | 2.67x |
| RII | 1.25x | 2.33x | 3.66x |
| EMP | 13.53x | 27.41x | 43.76x |
| Total | 0.65x | 1.22x | 3.49x |
IRFC IPO Allotment Status
IRFC IPO allotment status will be available on KFin Technologies’ website.
Click on this link to get allotment status.
Final thoughts
IRFC IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision
Happy Investing
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