IRFC IPO

Open Date 18th Jan 2021
Close Date 20th Jan 2021
Price Band Rs. 25 - Rs. 26 per equity share
Lot Size 575 shares and in multiples thereafter
Investment Per Lot Rs. 14,950
Listing at NSE and BSE
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IRFC IPO

IRFC IPO Details

The Indian Railways Finance Corporation (IRFC) is the backbone of Indian Railways. Specifically targeted to be the capital sourcing arm of the Ministry of Railways, it has helped Indian Railways acquire 8998 Locomotives, 2,14,456 wagons and 47,910 passenger coaches, all of which account for 70% of the rolling stock fleet of Indian Railways.

IRFC was tasked with funding railway projects to the tune of Rs. 1.50 Lakh Crores by 2019-20. It also funds other railway entities like Rail Vikas Nigam Limited (RVNL) Railtel, Konkan Railway Corporation Limited (KRCL) among others.

  • The total issue size is 1,782,069,000 Eq Shares of Rs. 10 (aggregating up to Rs. 44.333.8 mn)
  • With this IPO, IRFC intends to proceed with the OFS (594,023,000 Eq shares)

IRFC IPO Dates

Open Date 18th Jan 2021
Close Date 20th Jan 2021
Allotment Date 25th Jan 2021
Initiation of Refunds 27th Jan 2021
Credit of Shares to Demat Account 28th Jan 2021
Listing Date 29th Jan 2021

IRFC IPO Price

IPO Price Band Rs. 25 - Rs. 26 per equity share
Minimum Investment Amount Rs. 14,950
Maximum Investment Amount Rs. 1,94,350
Face Value Rs. 10 per equity share

IRFC IPO Lot Size

Minimum Lot Size 1 (575 shares)
Maximum Lot Size 13 (7475 shares)

IRFC IPO Review/Ratings

Key Competitive Strengths

  1. Strategic role in financing growth of Indian Railways
  2. Competitive cost of borrowings based on strong credit ratings in India and diversified source of funding
  3. AUM grew at a CAGR of 27% to Rs. 2,780 bn since FY 18
  4. Consistent financial performance and cost plus model
  5. PAT grew by a CAGR of 26.3% to Rs. 31,921 mn during FY 18 - FY 20 while RoE stood at satisfactory level of 11.6% in FY 20 considering the very low risk profile of the business
  6. Strong asset-liability management

Risk And Concerns

  • Business growth depends upon the Indian Railways expansion plan
  • Government poor fiscal situation can impact railways infrastructure investment
  • Contained margin and limited scope for RoE expansion

Download the IRFC IPO Report

IRFC IPO Subscription Breakup

QIBs 50%
Non-Institutional Investors 15%
Retail Individual Investors 35%

IRFC IPO Fundamental Analysis

  1. Net Interest Margin = 1.6 % for FY 20
  2. Return on Equity = 11.6% for FY 20
  3. PAT = 31,921 mn for FY 20 which is a growth of 49.2% over FY 19.
  4. AUM = 2661 Bn for FY 20
  5. PE = 10.6 for FY 20

Online Procedure to Apply For IRFC IPO

  1. Go to the IPO Section => IPO Listing => Open IPO.
  2. On tapping IRFC IPO, you can directly click on Subscribe to apply or even view the IPO details.
  3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
  4. Once you select ‘Subscribe’. Your bid will be executed.
  5. You can check the status of your IPO bid in the IPO Transactions section.
Click here to read the entire procedure to apply for the IPO
Apply for the IRFC IPO with Jiffy

IRFC IPO FAQs

Yes, IPO application for Retail Investors is up to 2 Lakhs.
You will have to opt for the ASBA – Application Supported by Blocked Amount facility. Please get in touch with your bank for the same, do check if your bank is in the list of Banks here: list of Banks here:
No. Applications made by retail investors using third party UPI ID or by any category of investors using a third party bank account are liable for rejection.
Yes, before the issue closure date. You can do it through Jiffy itself. The blocked amount will be available in 1 working day.
To check your allotment status, use this link - https://kcas.kfintech.com/ipostatus/