Indian Railway Finance Corporation Limited IPO All Details
Indian Railway Finance Corporation Limited, incorporated in 1986, is a public sector undertaking which is wholly owned by the Government of India. IRFC is registered with the RBI as an Infrastructure Finance Company. IRFC is involved in financing the acquisitions of rolling stock assets, providing loans to units under the Ministry of Railways, and leasing of railway infrastructure-related assets. IRFC is responsible for fundraising from financial markets to acquire & finance rolling stock assets like trucks, locomotives, coaches, wagons, etc., and leasing them to Indian Railways. It is also responsible for raising funds for improvements, expansion, and management of assets of Indian Railways.
IRFC has played a significant role in the expansion of Indian Railways & its related entities over the last 30 years. Some of the entities in the Railway sector where IRFC has been providing finances include Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL), Rail Vikas Nigam Limited (RVNL), etc.
IRFC financed approximately ₹ 52,535 crores which are 39.38% of the actual capital expenditure of Indian railways which was ₹1,33,400 Crores for the financial year 2019. Also, IRFC financed almost 82% of the Indian Railways rolling stock in the financial year 2019.
The promoter of the company is The President of India acting through the MOR (Ministry of Railways) under the Government of India.
Strengths of the company:
- IRFC has a very competitive cost of borrowing.
- The company also has very strong fundamentals and financial performance.
- It has a very sound and strong management of the asset-liability structure.
- IRFC has an expert management team.
- The credit ratings of IRFC are also very good.
- IRFC has played a very significant role in the growth & expansion of Indian Railways.
Purpose of the IPO:
- To meet the costs of the general corporate purposes.
- To increase the company equity capital for meeting the requirements of its future business growth.
- To unlock the value of the company.
- To strengthen the balance sheet of the company & increase its net worth.
Financial Performance of the company:
| 30 Sep 2019 | FY 2019 | FY 2018 | FY 2017 | |
| Total Revenue | 6,661.29 | 11,132.59 | 9,268.38 | 8,013.79 |
| Total Expenses | 4,946.49 | 8,232.01 | 6,675.8.9 | 5,900.29 |
| Profit after tax | 1,714.79 | 2,254.66 | 2,049.08 | 921.17 |
| Total Assets | 2,38,366.45 | 2,06,603.60 | 1,61,468.40 | 1,28,750.38 |
*All the values are in Crores.
Valuation of the company:
| 30 Sep 2019 | FY 2019 | FY 2018 | FY 2017 | |
| Basic Earnings per Share (EPS) | 1.83 | 3.43 | 3.14 | 1.41 |
| Diluted Earnings per Share (EPS) | 1.83 | 3.43 | 3.14 | 1.41 |
| Return on Net Worth (%) | 8.88% | 13.87% | 15.71% | 7.67% |
| Net Assets Value per Equity Share | 21.37 | 19.81 | 21.34 | 18.63 |
IPO details:
| Face Value | ₹10 per equity share |
| Market Lot | 575 Shares |
| Minimum Order Quantity | 575 Shares |
| Price Band | ₹25 - ₹26 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹4,633.38 crores |
| Fresh Issue | ₹3,088.92 Crores |
| Offer for Sale | ₹1,544.46 Crores |
| Listing | NSE, BSE |
Important IPO dates:
| Open Date | 18th January 2021 |
| Close Date | 20th January 2021 |
| Basis of Allotment Date | 25th January 2021 |
| Initiation of Refunds | 27th January 2021 |
| The credit of shares to Demat Account | 28th January 2021 |
| Listing Date | 29th January 2021 |