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
- Strategic role in financing growth of Indian Railways
- Competitive cost of borrowings based on strong credit ratings in India and diversified source of funding
- AUM grew at a CAGR of 27% to Rs. 2,780 bn since FY 18
- Consistent financial performance and cost plus model
- 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
- 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
- Net Interest Margin = 1.6 % for FY 20
- Return on Equity = 11.6% for FY 20
- PAT = 31,921 mn for FY 20 which is a growth of 49.2% over FY 19.
- AUM = 2661 Bn for FY 20
- PE = 10.6 for FY 20
Online Procedure to Apply For IRFC IPO
- Go to the IPO Section => IPO Listing => Open IPO.
- On tapping IRFC IPO, you can directly click on Subscribe to apply or even view the IPO details.
- On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and
tap Verify.
- Once you select ‘Subscribe’. Your bid will be executed.
- 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 Choice FinX
