IRFC
IPO Size
`4,633.4 Cr
Price Band
`25-26 Per Share
Minimum Lot Size
575 Share
Face Value
`10 Per Share
Employee Discount
NA
Retail Allocation
35%
Issue Open Date
18 Jan 21
Issue Close Date
20 Jan 21
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
Backed by the Government of India, 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 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.
| S.No. | 1 - Company | 2 - Directors | 3 - Promoters | |||
| Entity Name | By the Company | Against the Company | By the Director | Against the Director | By the Promoter | Against the Promoter |
| Criminal cases | 0.59 | - | - | - | - | - |
| Material civil cases | - | - | - | - | - | - |
| Taxation matters | 14664.47 | 26,547.13 | - | - | - | - |
| Regulatory Procedings | - | - | - | - | - | - |
| Amt. (In Million Rs.) | 14,665.06 | 26,547.13 | - | - | - | - |
| Income Statement (In Millions.) | Mar'20 | Mar'19 | Mar'18 |
| Interest Earned | 27,479.98 | 17,230.71 | 9,885.72 |
| Lease Income | 1,06,724.27 | 92,637.69 | 82,179.06 |
| Other Income | 6.65 | 5.15 | 13.61 |
| Total Income | 1,34,210.90 | 1,09,873.55 | 92,078.39 |
| Interest Expended | 1,01,626.62 | 81,830.62 | 66,375.85 |
| Net Interest Income | 32,577.63 | 28,037.78 | 25,688.93 |
| Operating expenses | 663.32 | 489.50 | 383.11 |
| Total Expenses | 1,02,289.94 | 82,320.12 | 66,758.96 |
| Operating Profit Before Provisions and Contingencies | 31,920.96 | 27,553.43 | 25,319.43 |
| Taxes | - | 6,154.10 | 5,304.83 |
| Net Profit for the Year | 31,920.96 | 21,399.33 | 20,014.60 |
The promoter of the company is Government of India through Ministry of Railways.
Finance arm of Indian railways enjoys monopoly in the railway segment. All financing requirements of Indian railways right from leasing, expansion and working capital requirements are catered by IRFC. The company is expected not to find any peer in future too.
The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 594,023,000 equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of around 60 crore Equity Shares aggregating up to ₹1,544.45 Cr (at an upper price band of Rs. 26).
The company has planned to raise fresh capital comprising an aggregate of 1,188,046,000 equity shares having Face Value ₹10 aggregating up to Rs. 3,088.91 Cr at the upper price band of Rs. 26. The net proceeds will be utilized for funding future capital requirements as Indian railways are on the verge of turnaround and augmenting general corporate purposes.