IRFC IPO (Indian Railway Finance Corporation) is all set to make a debut in the stock market with an issue size of 4633.38 Cr.
IRFC IPO –Overview
| IRFC IPO Issue Date | 18-20 January 2021 |
| IRFC IPO Opening Date | 18 Jan 2021 |
| IRFC IPO Face Value | INR 10 per share |
| IPO Price | INR 26 per share |
| IPO Lot Size | 575 Shares |
| Issue Size | 4633.38 Cr |
| Fresh Issue | – |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | 3.78 times |
| NII (HNI) Shares | 2.67 times |
| Company Promoters | The President of India acting through the Ministry of Railways (MoR) is the promoter of the company. |
IRFC IPO Limited IPO-Tentative Dates
| IRFC IPO opening date | 18 Jan 2021 |
| IRFC IPO closing date | 20 Jan 2021 |
| Basis of Allotment | 25 Jan 2021 |
| Initiation of Refunds | 27 Jan 2021 |
| The credit of Shares to Demat | 28 Jan 2021 |
| IRFC IPO Listing Date | 29 Jan 2021 |
Industry Overview.
The Indian Railways has been facing certain challenges such as overstretched infrastructure, with approximately 60% of the routes being more than 100% utilized and inadequate carrying capacity leading to decreasing modal share in freight and substantial unmet passenger demand.
The rail transport industry in India is a key sector of the country’s economy, as it plays a vital role in the transportation of goods and passengers across the country. It is the largest rail network in Asia and the second-largest in the world, with a track length of over 67,000 miles and a workforce of over 1.3 million employees. The rail transport industry in India is highly regulated and is dominated by the state-owned Indian Railways.
Company Overview
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 railway infrastructure assets, and lending to entities under the Ministry of Railways (MOR). Being the borrowing arm of Indian Railways, it 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 asset 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% of expenditures.
Objectives
- To augment company’s equity capital base to meet business future growth requirements.
- To meet general corporate purposes
Financial Statements
| Particulars | 31-Sept-20 | 31-Mar-20 | 31-Mar-19 |
| Total Assets | 37,221.96 | 34,796.11 | 24,820.05 |
| Total Revenue | 2,431.93 | 4,196.57 | 2,709.21 |
| Profit After Tax | 529.53 | 792.49 | 452.04 |
Strengths
- Strategic role in Indian Railways growth.
- Competitive cost of borrowing.
- Strong financial performance.
- Sound asset-liability management.
- Experienced management team.
Weakness
- The entire revenue of ~100% is dependent of Railways projects. As government is slowly moving the Railways projects into PPP(Public Private Partnership) models, then this will have a dampening effect on revenues of IRFC going forward.
Company Contact Information
Indian Railway Finance Corporation Limited
UG-Floor, East Tower, NBCC Place
Bisham Pitamah Marg, Pragati Vihar, Lodhi Road
New Delhi – 110 003
Phone: 91 (11) 2436 9766
Email: dgmcs@irfc.nic.in
Website: http://www.irfc.nic.in
IRFC IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/
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