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Indian Railway Finance Corporation Limited IPO Detail

Indian Railway Finance Corporation Limited IPO Detail

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.

Company Promoters

The President of India acting through the Ministry of Railways (MoR) is the promoter of the company.

IPO Details

IPO Opening DateJan 18, 2021
IPO Closing DateJan 20, 2021
Issue TypeBook Built Issue IPO
Face Value₹10 per equity share
IPO Price ₹25 - 26 per equity share
Market Lot575 Shares
Min Order Quantity575 Shares
Listing AtBSE, NSE
Issue Size₹4,633.38 Cr
Fresh Issue1,188,046,000 Eq Shares of ₹10
Offer for Sale594,023,000 Eq Shares of ₹10
Retail Portion -

IPO Tentative Timetable

The Indian Railway Finance Corporation Limited 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 DateJan 18, 2021
IPO Close DateJan 20, 2021
Basis of Allotment DateJan 25, 2021
Initiation of RefundsJan 27, 2021
Credit of Shares to Demat AccountJan 28, 2021
IPO Listing DateJan 29, 2021

IPO Lot Size

The Indian Railway Finance Corporation Limited IPO market lot size is 575 shares. A retail-individual investor can apply for up to 13 lots (7475 shares or ₹194350).

ApplicationLotsSharesAmount (Cut-off)

IPO Promoter Holding

Pre Issue Share Holding100%
Post Issue Share Holding86%

Company Financials:

For the year/period ended (₹ in Crs)

Financial Year Total Assets Total Revenue Profit After Tax
30-Sep-20 29,19,865.81 73,848.29 18,868.41
31-Mar-20 27,55,041.29 1,34,210.90 31,920.96
31-Mar-19 20,64,382.95 1,09,873.55 21,399.33
31-Mar-18 16,14,510.41 92,078.39 20,014.60

Objects of the Issue:

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.