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Let’s have a detailed review of the company and analytics of the Indian Railway Finance Limited IPO or IRFC IPO release date, IPO offer price, subscription, Indian Railway Finance Corporation IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Face ValueRs 10
Price BandRs 25 – 26
Listing AtBSE, NSE
Min. Order Quantity575
Listing Date  Jan 29, 2021
Offer for SaleRs 8887.2 MILLION
Fresh IssueRs 2650 MILLION
IPO SizeRs 4,633.38 Cr
Tick SizeRs. 1

Indian Railway Finance IPO or IRFC IPO is listed at NA premium, check out the live share price by clicking on the below link.

Summary of Indian Railway Finance IPO

Indian Railway Finance IPO

They are the dedicated market borrowing arm of the Indian Railways. Their primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles. For example – locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds.

Other items of rolling stock components as enumerated in the Standard Lease Agreement (collectively, “Rolling Stock Assets”), leasing of railway infrastructure assets and national projects of the Government of India (collectively, “Project Assets”) and lending to other entities under the Ministry of Railways, Government of India (“MoR”).

The Promoters of this company are THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA (“MoR”). The lead managers to the issue are IDFC Securities Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited and SBI Capital Markets Limited . The Registrar to this issue is KFin Technologies Private Limited.

Indian Railway Finance IPO or IRFC IPO Dates

The opening and the closing date of Indian Railway Finance IPO is Jan 18, 2021 and Jan 20, 2021.

Indian Railway Finance IPO or IRFC IPO Subscription

Day / DateQIBNIIRIIEmployeeTotal Subscription
1st Day – Jan 180.00x0.09x1.25x13.54x0.65x
2nd Day – Jan 190.00x0.24x2.22x27.41x1.22x
3rd Day – Jan 203.78x2.67x3.66x43.76x3.49x
Shares Offered or Net Issue356,375,339267,281,504623,656,843192,3071,247,505,993

The shares subscribed by the public will be updated here.

Indian Railway Finance IPO or IRFC IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Basis of Allotment FinalizationJan 25, 2021
Refunds InitiationJan 27, 2021
Credit of Shares to Demat AccountJan 28, 2021
Share Listing DateJan 29, 2021

Indian Railway Finance IPO Price Band / Cash Price

The face value of each share is Rs.10, and the cash price of the IPO is Rs.25 – 26. 

Indian Railway Finance IPO or IRFC IPO Size

This Initial Public Issue of 1,407,069,000 Equity Shares of Rs.10 each for cash at a price of Rs.25 – 26 per equity share aggregating to Rs.4,633.38 Cr.

Indian Railway Finance IPO Share Offering

Fresh Issue: The Fresh Issue of 938,046,000 Equity Shares by their Company of Rs.10 each at a price of Rs.25 – 26 per equity share aggregating to Rs.[●] million,

Net Issue : The Net Issue of [●] Equity Shares of Rs.10 each at Rs.25 – 26 per Equity Share aggregating to Rs.[●] million.

Offer for Sale : Offer for sale of up to 469,023,000 Equity Shares by the Promoter Selling Shareholder aggregating up to Rs.[●] Million.

Indian Railway Finance IPO / IRFC IPO – Live Performance

The listing date of this IPO is Jan 29, 2021. You can check the live performance of the IPO here, only after it is listed on exchanges.

Indian Railway Finance IPO Grey Market Premium

The Indian Railway Finance Limited IPO or IRFC IPO Grey Market Premium price is Rs 1.10-1.20, the Kostak rate is Rs 400 and the Subject to Sauda is Rs. 600

IRFC IPO – Promoter Holding

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

Indian Railway Finance Limited – Company Overview

Over the last three decades, they have played a significant role in supporting the capacity enhancement of the Indian Railways for instance by financing a proportion of its annual plan outlay. In addition to that, they are wholly-owned by the Government of India acting through the MoR.

They are registered with the Reserve Bank of India as a NBFC (Systematically Important) and are classified under the category of an “Infrastructure Finance Company” under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is notified as a “Public Financial Institution” under the Companies Act, 1956 likewise through a notification dated October 8, 1993 issued by the Ministry of Corporate Affairs.

Indian Railway Finance Leasing Model

They follow a financial leasing model for financing the Rolling Stock Assets. The period of lease with respect to Rolling Stock Assets is typically 30 years comprising a primary period of 15 years followed by a secondary period of 15 years in the same way, unless otherwise revised by mutual consent.

In terms of the leasing arrangements, the principal amount pertaining to the leased assets is effectively payable during the primary 15 years lease period, along with the weighted average cost of borrowing and a margin determined by the MOR in consultation with them at the end of each Fiscal.

Typically, the weighted average cost of borrowing factors in any expenses incurred by them with respect to any foreign currency hedging costs and/ or losses (and gains, if any) as well as any hedging costs for interest rate fluctuations. For the second 15 year period, they charge the Indian Railways a nominal rate which is subject to revision on mutually acceptable terms.

They also follow a leasing model for Project Assets, which consequently provide for lease periods of 30 years. As of September 30, 2019, their total AUM, consisted of 60.80% of lease receivables primarily in relation to Rolling Stock Assets, 2.56% of loans to central public sector enterprises entities under the administrative control of MoR (“Other PSU Entities”), and 36.64% of advances against leasing of Project Assets.

Indian Railway Finance – Standard Lease Agreement

For all the Rolling Stock Assets acquired during a financial year by Indian Railways, and as a result, they enter into a lease agreement with the MoR following the close of each respective Fiscal (the “Standard Lease Agreement”).

Lease rentals include the value of the Rolling Stock Assets leased by them to the MoR in the relevant fiscal year. In the same way, the weighted average cost of borrowing as well as a certain margin, all in accordance with the terms of the Standard Lease Agreement.

In Fiscal 2019, they were entitled to a margin of 40 bps over the weighted average cost of borrowing for financing Rolling Stock Assets and a spread of 35 bps over the weighted average cost of borrowing for financing Project Assets over the weighted average cost of borrowing.

Indian Railway Credit Rating

They maintain the highest possible credit ratings consequently, for an Indian issuer both for domestic and international borrowings. They have received the highest credit ratings from CRISIL – CRISIL AAA and CRISIL A1+, ICRA – ICRA AAA and ICRA A1+, and CARE – CARE AAA and CARE A1+.

The Company also been accorded with Baa2 (Negative) rating by Moody’s, BBB- (Stable) rating by Standard and Poor’s, BBB- (Stable) rating by Fitch and BBB+ (Stable) rating by Japanese Credit Rating Agency that are on par with India’s sovereign ratings.

Indian Railway Finance / IRFC IPO – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
Total Assets29,19,865.8123,82,779.7927,55,041.2920,64,382.9516,14,510.41
Total Revenue73,848.2965,768.911,34,210.901,09,873.5592,078.39
Total Expense54,979.8849,464.981,02,289.9482,320.1266,758.96
Profit After Tax18,868.4116,303.9331,920.9621,399.3320,014.60

Earnings per Equity Share (in Million)

Amount (in INR & Million)
Basic & Diluted1.591.743.403.263.07

From FY 2017-18 to FY 2019-2020, as per the Restated Financial Statements

  • Our total revenue from operations increased by 19.33% from Rs.92,078.39 million in Fiscal 2018 to Rs.109,873.55 million in Fiscal 2019 and by 22.15% to Rs.134,210.90 million in Fiscal 2020, and was Rs.73,848.29 million in the six months ended September 30, 2020.
  • In Fiscals 2018, 2019 and 2020, and the six months ended September 30, 2020, our profit for the period was Rs.20,014.60 million, Rs.21,399.33 million, Rs.31,920.96 million and Rs.18,868.41 million, respectively.

Indian Railway Finance IPO – Promoters

The Promoters of this company are:


List of Related Parties (Key Managerial Personnel)

  • Vijay Babulal Shirode, Company Secretary and Compliance Officer
  • Ashutosh Samantaray, Additional General Manager (Finance)
  • N.H. Kannan, General Manager (Finance)
  • Prasanta Kumar Ojha, General Manager (Finance)

Indian Railway Finance Limited: Key Strength

  • Strategic role in financing growth of Indian Railways
  • Competitive cost of borrowings based on strong credit ratings in India and diversified sources of funding
  • Consistent financial performance and cost plus model
  • Low risk business model
  • Strong asset-liability management
  • Experienced senior management and committed team

Indian Railway Finance IPO Offer Details / IRFC IPO Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Up to 1,407,069,000 Equity Shares, aggregating up to Rs.[●]million
 Of which:
Fresh Issue938,046,000 Equity Shares, aggregating up to Rs.[●]million
Offer for SaleUp to 469,023,000 Equity Shares, aggregating up to Rs.[●]million
Of which:
Employee Reservation PortionUp to [●] Equity Shares aggregating up to Rs.5 million*
Net IssueUp to [●] Equity Shares aggregating up to Rs.[●] million*
Of which:
QIB PortionNot more than [●] Equity Shares
Non-Institutional PortionNot less than [●] Equity Shares
Retail PortionNot less than [●] Equity Shares
 *Equity Shares outstanding prior to the Issue11,880,460,000 Equity Shares
 Equity Shares outstanding after the Issue13,068,506,000 Equity Shares

IRFC IPO / Indian Railway Finance IPO Issue Object

These are the IPO Issue Objects of the company:

(1) Augmenting their equity capital base to meet their future capital requirements arising out of growth in their business; and

(2) General corporate purposes.

Indian Railway Finance Limited: Business strategies

  • Diversification of borrowing portfolio
  • Broaden their financing portfolio
  • Continued focus on asset-liability management
  • Provide advisory and consultancy services and venture into syndication activities

IRFC IPO / Indian Railway Finance IPO – Basis of Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Strategic role in financing growth of Indian Railways;
  • Competitive cost of borrowings based on strong credit ratings in India and diversified sources of funding;
  • Consistent financial performance and cost-plus model;
  • Low risk business model;
  • Strong asset-liability management; and
  • Experienced senior management and committed team.

Indian Railway Finance IPO – Quantitative Factors

Basic & Diluted EPSRONW in %NAV (Rs.)

Indian Railway Finance Limited: Competitive Peers

There are no listed companies in India in the same line of business as that of the Company.

Indian Railway Finance IPO Lead Managers

Lead Managers
IDFC Securities Limited

HSBC Securities and Capital Markets (India) Private Limited

ICICI Securities Limited

SBI Capital Markets Limited

IRFC IPO Registrar to Offer

Registrar to the Offer
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana, India
Telephone: +91 40 6716 2222
Email: einward.ris@kfintech.com
Investor grievance email: irfc.ipo@kfintech.com
Contact Person: M. Murali Krishna
Website: www.kfintech.com
SEBI Registration No: INR000000221

IRFC IPO – Other Details

  • Statutory Auditor – M/s SPMG & Co.
  • Legal Counsel to the Company – Khaitan & Co, Squire Patton Boggs Singapore LLP
  • Bankers to the Company – Corporation Bank, State Bank of India, ICICI Bank Limited

Indian Railway Finance IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

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    Indian Railway Finance IPO News

    News 1Indian Railway Finance IPO  [Download RHP Prospectus]

    News 2 – Indian Railway Finance IPO  [Download DRHP Prospectus]

    Indian Railway Finance IPO Review FAQs

    Ques – What is the Issue Size of Indian Railway Finance IPO?

    Answer – The Company is making an initial public offer of 1,407,069,000 equity shares. We vividly portray the aspects of the issue in this article. You can check the stats on fresh issue, Offer for sale, and the net issue.

    Ques – What is the Price band?

    Answer – The price band for IRFC IPO ranges between Rs 25 – 26. As far as the face value of the share is of concern, it is Rs.10 per share.

    Ques – What is the Indian Railway Finance IPO Open Date?

    Answer – The opening and closing date for the IPO have been updated. The IPO is set to open on JANUARY 18, 2021 while the closing date is set at JANUARY 20, 2021.

    Ques – What is the IRFC IPO Allotment Date?

    Answer – We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on Jan 25, 2021, refund initiation is on Jan 27, 2021, credit of shares is on Jan 28, 2021 and share listing date is on Jan 29, 2021.

    Ques – What is the IPO Listing Date?

    Answer – Shares of this company shall be listed in the exchanges BSE as well as NSE. Date when the listing would be done is stagnant on Jan 29, 2021.

    Ques – Who is the Registrar of this IPO?

    Answer – One of the reputed registrars are managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on a lookout for.

    Ques – Who is the Promoter of this Company?

    Answer – Here is the promoter of this company – THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA (“MoR”). You can refer to the RHP for further information on the promoter. Consequently, you will find the link to RHP in the article.

    Ques – What is GMP of Indian Railway Finance IPO?

    Answer – We have obtained the GMP of this IPO and it is 1.50 – 2.0. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.

    Ques – Is Indian Railway Finance IPO good for Investment?

    Answer – The primary reason is that IRFC is the borrowing arm of Indian railways and is a wholly owned subsidiary of Government. This makes it a desirable option of investment for the investors looking for profitable opportunities and insights. We can project a possible growth in the company based on its positive balance sheet.

    Ques – What is the PAT of this Company?

    Answer – We have the information of company financials, and according to that, we have the figures from the last few years to provide. In fact, PAT for the financial year 2020 is 31,920.96 million, 2019 is 21,399.33 million, 2018 is 20,014.60 million. Further, PAT from September 2020 is 18,868.41 million.

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