IRFC IPO: The initial public offering (IPO) of Indian Railway Finance Corp (IRFC) worth about 4,600 crores will hit the market on 18 January.
Established in 1986, the IRFC (Indian Railway Finance Corporation) is a public sector enterprise that is completely 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).
IRF is registered with the RBI as a Non-Banking Finance Company (NBFC) under the category of an Infrastructure Finance Company.
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.
IRFC IPO Objectives
According to the official spokesperson of IRFC, the net proceeds from the IPO will be used to augment the company’s equity capital base to meet its future capital requirements arising out of growth in their business, the company explained in its draft red herring prospectus.
- 1,544.46 crores will go the government, considering the top price band of 26.
- 3,088.92 crores will go to the company’s balance sheet. It is also open to diversifying its portfolio to any project that has backward or forward linkage with Indian Railways.
| Opening Date | Jan 18, 2021 |
| Closing Date | Jan 20, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs10 per equity share |
| IPO Price | Rs 25 to Rs 26 per equity share |
| Market Lot | 575 Shares |
| Min Order Quantity | 575 Shares |
| Listing At | BSE, NSE |
| Issue Size | 1,782,069,000 Equity Shares of 10 (aggregating up to Rs 4,633.38 Cr) |
| Fresh Issue | 1,188,046,000 Equity Shares |
| Offer for Sale | 594,023,000 Equity Shares |
Financials
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Revenue | 7384.82 | 13421.09 | 10987.35 | 9207.83 |
| Profit After Tax | 1886.84 | 3192.09 | 2139.93 | 2001.46 |
IRFC IPO Lot Size
| 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 Tentative Timetable
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 |
