We have a detailed review of the Indian Railway Finance Corporation IPO (IRFC IPO). In this article will discuss release date, IPO offer price, subscription, IRFC IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Indian Railway Finance Corporation (IRFC) was set up on 12th December 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.

The primary objective of IRFC is to meet the predominant portion of ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways.

IRFC’s cumulative funding to rail sector has crossed Rs.1.80 lakh crore as of 31st March, 2017 and is all set to cross Rs.2.20 lakh crore by the end of March, 2018. The funds are utilized for acquiring rolling stock assets and also building up infrastructure, constituting significant part of annual capital expenditure of Indian Railways. So far, it has funded acquisition of 8998 locomotives, 47910 passenger coaches, 2,14,456 wagons, which constitute around 70% of the total rolling stock fleet of Indian Railways.

From 2011-12 onwards, IRFC has forayed into funding of railway projects and capacity enhancement works. The Company has been assigned the additional task of funding Railway Projects through Institutional Finance to the extent of Rs.1.50 Lakh Crore by 2019-20.

IRFC has also been lending to various entities in Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.

IRFC’s constant endeavour has been to diversify its borrowing portfolio in terms of instruments, markets and investors which has led to the Company meeting the targeted borrowings year after year, through the issue of both taxable and tax-free bonds, a term loan from banks/financial institutions besides offshore borrowings, at competitive market rate.

Promotors of Indian Railway Finance Corporation IPO (IRFC IPO)

• Manjula Rangarajan is the Part-time Chairperson of the Board of the Company. She holds a master’s degree in sociology from the University of Madras. She is an officer of the Indian Railway Accounts Service. She currently serves as the financial commissioner (railways), alongside the position of additional member (finance) and additional member (budget) with the Railway Board.
• Amitabh Banerjee is the Managing Director of the Company. He holds a bachelor’s degree in commerce from the University of Delhi and a master’s degree in commerce from the University of Delhi and is also a fellow member of the Institute of Cost Accountants of India. He is an employee of the Indian Railways Accounts Service. In the past, he has been associated with Konkan Railway Corporation Limited as well as the Hindustan Paper Corporation Limited in the capacity of the director (finance).

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Lead Managers of Indian Railway Finance Corporation IPO (IRFC IPO)

• HSBC Securities & Capital Markets Pvt Ltd
• ICICI Securities Limited
• IDFC Bank Limited
• SBI Capital Markets Limited

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Financials of Indian Railway Finance Corporation IPO (IRFC IPO)

Particulars	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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Indian Railway Finance Corporation IPO (IRFC IPO) Details

Security Type	Equity
Issue Period	Jan 18, 2021 to Jan 20, 2021
IPO Market Timings	10.00 am to 5.00 pm
Issue Size – No. of Shares	1,782,069,000 Eq Shares of ₹10 (aggregating up to ₹4,633.38 Cr)
Price Band	₹25 to ₹26 per equity share
Face Value	10
Market Lot	575 Shares
List at	NSE, BSE

Tentative Date/ Timetable of Indian Railway Finance Corporation IPO (IRFC IPO)

Bid/Offer Opens On	Jan 18, 2021
Bid/Offer Closes On	Jan 20, 2021
Finalisation of Basis of Allotment	Jan 25, 2021
Initiation of Refunds	Jan 27, 2021
Credit of Shares to Demat Acct	Jan 28, 2021
IPO Shares Listing Date	Jan 29, 2021

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Indian Railway Finance Corporation IPO (IRFC IPO) Latest Grey Market Premium (GMP)

DATE	OFFER PRICE	GREY MARKET PREMIUM	KOSTAK RATES
17.01.2021	₹26	₹2-3	₹450
16.01.2021	₹26	₹2-3	₹550
15.01.2021	₹26	₹2-3	₹550
14.01.2021	₹26	₹2-3	₹550
13.01.2021	₹26	₹2-3	₹550

IPO Subscription Details of Indian Railway Finance Corporation IPO (IRFC IPO)

SUBSCRIPTION (CATEGORY WISE)	SHARES OFFERED	DAY 1	DAY 2	DAY 3
QIB	–	–	–	–
NII	–	–	–	–
Retail	–	–	–	–
Total	–	–	–	–

IPO Allotment status of Indian Railway Finance Corporation

Indian Railway Finance Corporation IPO (IRFC IPO) Allotment Status can be checked here by clicking to find the IPO Allotment Status. Allotment of Equity Shares as per the Fresh Issue and move of the Offered Shares of the Promoter Selling Shareholders compliant with the Offer available to be purchased to the effective Bidders.

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