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IRFC IPO – Pros and cons

Indian Railway Finance Corporation (IRFC) is the borrowing division of the Indian Railways or in simple words, IRFC does financing for the Indian Railways. It mainly finances the purchase of Rolling stock assets which includes Coach locomotives, trucks, Wagons containers electric multiple units trollies etc.

The leasing of railways infrastructure assets are being carried out by this firm (since last few decades). The IRFC is fully owned by the government of India and of course the main promoter is president of India. Being the Borrowing division, the IRFC is registered with Reserve Bank of India as an NBFC (Non-Banking Finance Company) under the category of an infrastructure Finance company.

Even though the main customer is Indian railways, IRFC also takes on projects for other railway companies like Railtel corporation, RVNL (Rail Vikas Nigam Limited),kongan Railway corporation Ltd etc. Considering the financials and it’s assets, the issue seems to be an undervalued offering.

The registrar for the IPO is Kfintech Private Limited and the shares are supposed to be listed on the BSE and NSE. IRFC IPO opens on January 18, 2021, and closes on January 20, 2021.

IPO Details

IPO date 18-21 JAN 2021
Issue Size 4633.38 Cr.
Fresh Issue 1,188,046,000 Equity Shares of Rs.10
Offer For Sale 594,023,000    Equity Shares of Rs.10
Face value Rs 10
Price Band 25-26 per Equity share.
Lot size 575 shares
Listing at NSE,BSE
Allotment date 25th JAN
Listing date 29th JAN

 

 

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