Indian Railway Finance Corporation (IRFC)’s initial public offering (IPO) of about ₹4,600 crore will hit the markets next week.
It will be the first Non-banking financial company (NBFC) in the Public sector Unit that is going public.
About Company
Incorporated in 1986, the Indian Railway Finance Corporation (IRFC) is a public-enterprise that is wholly-owned by the Government of India.
IRFC is primarily engaged in financing the acquisition of rolling stock assets, leasing of railway infrastructure assets, and lending to entities under the Ministry of Railways (MoR).
Being the borrowing arm of Indian Railways, IRFC is responsible to raise funds for MoR that is required to procure rolling stock assets (wagons, trucks, electric multiple units, locomotives, coaches), its improvement, expansion, and assets management.
Issue details
The initial public offering of up to 1,78,20,69,000 equity shares consists of a fresh issue of 1,18,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares by the Government of India.
It will constitute up to 13.64 percent of the post issue paid-up equity share capital of the company.
Subscription Date
The IPO will open on January 18 and close on January 20.
Price Band and lot Size
IRFC is issuing shares at a price band of ₹25 to ₹26 with the lot size of 575 shares.
A retail-individual investor can apply for up to 13 lots (7475 shares or ₹194,350).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 575 | ₹14,950 |
| Maximum | 13 | 7475 | ₹194,350 |
Object for 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’s Financial
| Particulars | For the year/period ended (Rs in million) | |||
|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 29,19,865.81 | 27,55,041.29 | 20,64,382.95 | 16,14,510.41 |
| Total Revenue | 73,848.29 | 1,34,210.90 | 1,09,873.55 | 92,078.39 |
| Profit After Tax | 18,868.41 | 31,920.96 | 21,399.33 | 20,014.60 |
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