IRFC is a Public Sector Undertaking (PSU) wholly-owned finance by the Government of India acting through the Ministry of Railways.
The company is registered with the Reserve Bank of India as a systematically important NBFC and is classified under the category of an “Infrastructure Finance Company”.
IRFC is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock, leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the Ministry of Railways.
The actual capital expenditure of the Indian Railways was INR133,400 crore in FY2019 and IRFC financed INR52,535 crore accounting for 39.38% of the actual capital expenditure.
In FY2019, IRFC was responsible for financing 82% of the Indian Railway’s total rolling stock through a financial leasing model with leasing period typically spanning 30 years.
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.
Company Financials
| Particulars | For the year/period ended (₹ in million) | |||
|---|---|---|---|---|
| 30-Sep-19 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 2,383,664.55 | 2,066,036.09 | 1,614,684.08 | 1,287,503.84 |
| Total Revenue | 66,612.93 | 111,335.94 | 92,683.81 | 80,137.90 |
| Profit After Tax | 17,147.96 | 22,546.61 | 20,490.86 | 9,211.71 |
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.
IRFC IPO Details
| IPO Opening Date | 18 JAN 2021 |
| IPO Closing Date | 20 JAN 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 | ₹ 4633.20 Cr |
| Total Share Issue | 1,78,20,69,000 Equity Share |
IRFC IPO – Schedule
| Bid/Offer Opens On | 18 JAN 2021 |
| Bid/Offer Closes On | 20 JAN 2021 |
| Finalization of Basis of Allotment | 25 JAN 2021 |
| Initiation of Refunds | 27 JAN 2021 |
| Credit of Shares to Demat Acct | 28 JAN 2021 |
| IPO Shares Listing Date | 29 JAN 2021 |
IRFC IPO (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 575 | ₹14,950 |
| Maximum | 13 | 7,475 | ₹1,94,350 |
IRFC IPO: How To Apply
Promoters play a very important role in raising much-needed business revenue.
Apply For IRFC IPO IPO Through ASBA
First, you should know what ASBA is. ASBA stands for Restricted Application Support. It is an application by the bank to apply for an IPO.
You apply with ASBA through the bank because initially, the bank covers the cost of purchasing the IPO. This amount is deducted from your account only after receiving IPO share shares in your Demat account.
All the major banks in the country are expanding the ASBA center. There are about 30 banks on the list, some of which are IDBI Bank Limited, Citi Bank, Punjab National Bank, etc.
The center may be expanded once they have been authorized to do so. These banks block the corresponding amount until the IPO allocation process is finalized.
Now, most of you are probably thinking about how to use the IRFC IPO IPO with ASBA. The process can be completed online or offline for your convenience.
Apart from this, you can also bid for an IRFC IPO IPO through your stockbroker’s online portal (such as Zerodha, Edelweiss, Motilal Oswal, etc.)
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 |
