IRFC IPO Review and Analysis- First IPO of New Year 2021

State-Owned Indian Railway Finance Corporation has decided to open its maiden public offer for subscription on January 18, 2021. The issue was already approved in February 2020 by SEBI but due to the pandemic situation in the country, it comes up in January 2021. Here are the Indian Railways Finance Corporation IPO Review and Analysis.

Indian Railways Finance Corporation IPO Review and Analysis

On 13th January 2021, the date of IRFC’s upcoming IPO revealed by the Secretary, Department of Investment and Public Assets Management. “IRFC coming up for listing with an Rs. 4600 cr+ issue in a price band of Rs. 25-26 share. The anchor will book on Jan 15 and the main book from Jan 18-20”, tweet by the secretary.

About the Company- Indian Railway Finance Corporation

It was incorporated in 1986, The IRFC is a public sector enterprise that is wholly owned by the government of India. The company 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.

IRFC is the first NBFC in the PSU sector that is going public. It is a dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas markets. Its primary objective is to meet the predominant portion of the ‘Extra Budgetary Resource’ requirement of the Indian Railways through market borrowings at the most competitive rates and terms.

Competitive Strengths of the IRFC

A) Strategic role in Indian Railway Growth.

B) Sound Credit Rating i.e. CRISIL AAA/A1+ and ICRA AAA/A1+.

C) Competitive cost of borrowing.

D) Strong Financial Performance.

E) Sound Assets-Liability Management.

F) Experienced Management Team.

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Must Read- 9 Expected Upcoming IPO List For May and June 2021

Financial analysis of IRFC

Here is the financial analysis to opt for Indian Railway Finance Corporation for the year/period ended (Rs. in million).

ParticularsApr- Sep 2020FY March 2020FY March 2019FY March 2018
Total Assets29,19,865.8127,55,041.2920,64,382.9516,14,510.41
Total Revenue73,848.291,34,210.901,09,873.5597,078.39
Profit After Tax (PBT) 18,868.4131,920.9621,399.3320,014.60

The object of the IRFC public issue

Utilization of Fund- IRFC said that the net proceeds from the fresh issue are proposed to be utilized for augmenting the equity capital base of the company to meet their future capital requirement arising out of growth in their business and for general corporate purposes.

Indian Railways Finance Corporation IPO Details

The government plans to sell around 13.64% in the company to raise around Rs, 4633.38 crores at the upper end of the price band.

Indian Railway Finance Corporation collects Rs. 1390 crore from 31 of its anchor investors

How to Check IRFC IPO Online Status

The bids for the issue can be made for a minimum of 575 shares and in multiples thereafter. Up to 50% of the net issue will be reserved for the Qualified Institutional Buyers (QIB) while the company has reserved not more than 35% of the issue for the retail investors and 15% of the issue will be reserved for the Non-Institutional category.

Also Read- List of more upcoming IPO in January 2021.

Here are the complete details of Indian Railways Finance Corporation IPO-

ParticularsIPO Details
IPO Opening DateJan 18, 2021
IPO Closing DateJan 20, 2021
Issue TypeBook Built Issue IPO
Issue AmountRs. 4633.38 Crore (178.20 Crore Equity Shares)
Fresh Issue118.80 Crore Equity Shares (Approx)
offer for sale59.43 Crore Equity Shares (Approx)
Face Value of ShareRs. 10 per Share
Price Band of IPORs. 25 to 26
Lot Size575 Shares and in multiples thereafter
Listing AtBSE and NSE
Source – RHP

Note- The company will not receive any proceeds from the offer for sale and the same will be received by the Government of India.

Indian Railways Finance Corporation IPO Dates- Tentative Time Table

ParticularsDates
IPO Open DateJan 18, 2021
IPO Close DateJan 20, 2021
Basis of Allotment DateJan 25, 2021
Initiation of RefundsJan 27, 2021
Credit of Share to Demat A/cJan 28, 2021
IPO Listing DateJan 29, 2021

IRFC IPO Lot Size

ApplicationLotsSharesAmount (Cut-off)
Minimum1575Rs. 14,950
Maximum137475Rs. 1,94,350

Indian Railways Finance Corporation IPO DRHP and RHP

Also Read- What is the meaning of DRHP and why it is important in IPO

FAQs

  1. Who is the promoter of the Indian Railway Finance Corporation?

    The president of India acting through the ministry of Railways (MOR) is the promoter of the IRFC.

  2. What is the goal of the IRFC IPO?

    IRFC said that the net proceeds from the fresh issue are proposed to be utilized for augmenting the equity capital base of the company to meet their future capital requirement arising out of growth in their business and for general corporate purposes

  3. What is the Indian Railways Finance Corporation IPO Listing Date?

    The listing date of IRFC IPO will be 29 January, 2021.

  4. What is the Indian Railways Finance Corporation IPO Launch Date?

    The Indian Railways Finance Corporation Initial Public Offer will open on 18 January 2021 and close on 20 January 2021. The share of IRFC is proposed to be listed on 29 January 2021.

  5. What is the Indian Railways Finance Corporation IPO Allotment Date?

    The allotment date of the IRFC IPO will be 25 January 2021. The IRFC IPO market lot size is 575 shares with a price band of Rs. 25-26 per share, having a face value of Rs. 10 each.

  6. How many lots can a retail individual investor apply to Indian Railway Finance Corporation IPO?

    The Indian Railway Finance Corporation IPO market lot size is 575 shares. A retail-individual investor can apply for up to 13 lots (7475 shares or Rs. 1,94,350).

  7. What is the lot size of Indian Railway Finance Corporation IPO?

    The Indian Railway Finance Corporation IPO market lot size is 575 shares and the minimum order quantity is 575 shares. A retail-individual investor can apply for up to 13 lots (7475 shares or Rs. 1,94,350).

  8. How to apply for Indian Railways Finance Corporation IPO?

    Visit Here.
    Log in using your UCC Id and PAN Number.
    Enter the birth year to verify your account.
    Click on apply for an IPO section.
    Click on the ‘Details’ button below the widget of the IPO you are choosing to apply for.
    Use the details page to go through all the company-related details.
    Click on the ‘Place Bid’ button at the bottom.
    Enter your UPI ID and click on ‘Continue’.
    Enter the lot size and your bid amount and click ‘Continue’.
    Confirm the order.

    You will then see an order confirmation screen telling you whether or not your application was successful.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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