Incorporated in 1986, the Indian Railway Finance Corporation (IRFC) is a public-sector enterprise that is wholly-owned by the Government of India. IRFC is primarily engaged in financing the acquisition of rolling stock assets, leasing of railway infrastructure assets, and lending to entities under the Ministry of Railways (MoR). Being the borrowing arm of Indian Railways, IRFC is responsible to raise funds for MoR that is required to procure rolling stock assets (wagons, trucks, electric multiple units, locomotives, coaches), its improvement, expansion, and assets management.
It follows a financial leasing model to finance rolling stock assets procurement for a lease period of 30 years. In fiscal 2019, the actual capital expenditures by the Indian Railways were Rs. 1,334 billion, out of which, IRFC financed Rs. 525.35 bn accounting for 39.34% expenditures.
Competitive strengths
- 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.
The President of India acting through the Ministry of Railways (MoR) is the promoter of the company.
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 |
The net IPO proceeds are proposed to be utilized for the following objects:
- To augment company's equity capital base to meet business future growth requirements.
- To meet general corporate purposes.
| 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 up to ₹4,633.38 Cr) |
| Fresh Issue | 1,188,046,000 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) |
| Offer for Sale | 594,023,000 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) |
The IRFC IPO open date is Jan 18, 2021, and the close date is Jan 20, 2021. The issue may list 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 |
The IRFC IPO market lot size is 575 shares. A retail-individual investor can apply for up to 13 lots (7475 shares or ₹194,350).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 575 | ₹14,950 |
| Maximum | 13 | 7475 | ₹194,350 |
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 86% |
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