The Rs 4,633 crore IPO offering by IRFC has opened its subscriptions on January 18 2021 and the issue will remain open till January 20.
The price band has been fixed at Rs 25-26 per share and includes a reservation of shares worth Rs 50 lakh for eligible employees.
Issue also comprises of 1,18,80,46,000 equity shares. Out of total 1,78,20,69,000 there is also a offer for sale of 59,40,23,000 equity shares by the President of India.
The issue has been given a thumbs up by many broking houses due to low-risk business model and lower credit risk.
Also, this has incurred the highest allocation of capital expenditure for Indian Railways in Union Budget 2020. The Indian Railways played a strategic role in uplifting the financial growth of the Indian Economy.
The company also sources funds from various diversified approaches like term loans from banks, internal accruals and lease financing etc.
Given the fact that the company favours to the Government of India, any asset quality issue isn’t likely to happen.
Many experts feel that IRFC is expected to avail premium post listing because of the strategic role in the financial growth of Indian Railways.
The company is also classified under the category of “Infrastructure Finance Company” and also financed Rs 71,400 crore for the Indian Railways in fiscal year 2020.
The company also has a very strong asset liability management and also the company funds are well placed to manage liquidity requirements.
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