State-owned Indian Railway Finance Corporation is coming out with an IPO on Jan 18, 2021 at a Price band of Rs.25 to Rs.26 per equity share for a face value of Rs.10 per equity share. The issue will remain till Jan 20, 2021. The Share of IFRC will get listed on both NSE and BSE. The book running lead managers to the issue are DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets.
IFRC was incorporated in 1986, as a public-sector enterprise that is wholly-owned by the Government of India. The Primary business for IRFC is financing the acquisition of rolling stock assets, leasing of railway infrastructure assets, and lending to entities under the Ministry of Railways (MoR). It acts as the borrowing arm of Indian Railways, IRFC is mainly responsible to raise funds for MoR which are required to not only to procure rolling stock assets like wagons, trucks, electric multiple units, locomotives, coaches, but also its improvement, expansion, and assets management.
IFRC 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.
Promoters or IFRC
The President of India acting through the Ministry of Railways (MoR) is the promoter of the company.
Company Financials of IFRC
Summary of financial Information (Restated Consolidated)
| 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 |
Important points for IRFC IPO
| 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) |
Important dates for IRFC IPO
| 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 |