IRFC IPO Dates, price band, details

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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 nameIndian Railway Finance Corporation Limited

Dates to remember

IPO Open18 January 2021
IPO Close20 January 2021
Basis of Allotment25 January 2021
Refunds date27 January 2021
Credit to Demat Account28 January 2021
 Listing Date29 January 2021

IPO details

Issue typeBook Built Issue IPO
IPO issue size₹4,633.38 Crores
Number of shares offered1,782,069,000 Shares
Face value₹10 per equity share
Price band₹25-₹26 per equity share
Retail portion35%
Lot size575 Nos
Minimum application1 lot – 575 shares
Maximum application13 lot – 7475 shares
Minimum application amount₹14,950
maximum application amount₹194,350
Listing ExchangeBSE, 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)
 FY2018FY2019FY2020H1 FY2021
Net income2,002.32,140.13,191.51,887.3
Margin (%)21.719.523.825.6

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 Holding100%
Post Issue Share Holding86%

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 
 +91 40 2343 1551 

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

IRFC IPO Subscription Status

CategoryDay 1D 2D 3

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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