Indian Railway Finance Corporation Ltd IPO

This is to inform you that Indian Railway Finance Corporation Ltd is coming out with a public issue to raise Rs.4633 crore from the market.

The issue opens on January 18 and closes on January 20, 2021.

Details of the Indian Railway Finance Corporation Ltd IPO

Company Details :
  • The Indian Railways is the largest rail network in Asia, running approximately 13,523 passenger trains every day in Fiscal 2019 to transport approximately 23.12 million passengers per day in Fiscal 2019.
  • The Indian Railways has constantly expanded its network, developed, and grown across various parameters including freight and passenger revenues. Indian Railways has always played a key role in India’s social and economic development as it is a cheap and affordable means of transportation for millions of passengers and as a carrier of bulk freight, plays a significant role in various industries, including agriculture
  • Indian Railways faces 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 capital expenditure plan from Fiscal 2016 to Fiscal 2020 (planned outlay of INR 8,560.2 Bn) focuses on improving freight carrying capacity through capacity augmentation to achieve network decongestion, enhancing outlay for doubling third and fourth line projects, developing dedicated freight corridors and improving competitiveness of the Indian Railways through cost optimisation through electrification and improving customer experience by increasing outlay for safety, station redevelopment and passenger amenities.
  • With the expansion of the freight network and passengers demand, the requirement of rolling stock will increase substantially.
  • The capital expenditure of Indian Railways for 2020-21 was ₹ 161,042 crore, which was higher than the revised estimate of 2019-2020 by ₹ 4,690.03 crore (2.99% higher than the revised estimate for 2019-2020)
Issue Period : Issue opens on: Monday, January 18, 2020
Issue closes on: Wednesday, January 20, 2020
Price Band : Rs.25 to Rs.26 per equity share
Bid Lot : 575 shares and in multiples thereof
Issue Size : Rs.4633 crore
Issue break-up : QIB – 50 % of the Net offer – Rs. 2316 Cr
NIB – 15 % of the Net offer – Rs. 695 Cr
RET – 35 % of the Net offer – Rs. 1622 Cr
Listing : NSE and BSE
Registrar : KFIN Technologies Pvt. Ltd.
UPI : All Retail Applications through brokers are compulsorily in UPI Mode

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.

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.

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

IRFC IPO Promoter Holding:

Pre Issue Share Holding 100%
Post Issue Share Holding 86%

For More details….. View PDF

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