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Launch of IRFC IPO- Today!

Hello people! IRFC IPO is launching on January 18, 2021 and we are here giving you a brief analysis of this IRFC IPO, which stands for Indian Railway Finance Corporation, Initial Public Offering.

Basically, IRFC is incorporated as a public sector enterprise under the ministry of Railway. So, the promoter of IRFC is Indian Railways.

Main work of IRFC is Acquisition of Rolling stock assets (means acquisition of Rails and other assets), giving away the infrastructure project of railway on lease, and lending money to entities under ministry of railway. So, role of IRFC became critical in growth of Indian railway. It also raises funds for financing projects under ministry of railway.

If we look at numbers, IRFC financed 525.35 billion rupees to Indian railway and total expenditure of Indian railway was- around 1300 billion rupees. So, it financed around 40% of total expenditure of Indian railway. Financials are strong. Isn’t it?

Main features

• AAA/A1 rating by Crisil (leading rating agency)
• Strong financials
• Contribution percentage to Indian railway expenditure
• Wholly government owned. Very important entity for railway like IRCTC.
• Strong asset-liability position.

If, above information is not sufficient, then we also looked into its financial on MCA site. We have checked its annual fillings too. (Not everyone can access that)

As per the last filling made by its revenue and assets are-

Particulars	30 sep 2020	31-mar-2020	31-03-2019
Total Assets	29,19,865	27,55,041	20,64,382
Total revenue	73,848	1,34,810	1,09,873
PAT	18,868	31,920	21,399

**Rs in Million

IPO OBJECT

Fund Raised from this IPO will be invested to augment Company’s equity capital base to meet business future growth requirement.

IRFC IPO Opening & Closing date and other details

IRFC IPO Opening date	18 January 2021
IRFC IPO Closing Date	20 january 2021
IPO Price	Price band of 25 to 26 rupees per share
Face value of share	10 Rs
Market lot	575 shares
Investment in 1 Lot	14950 Rs. (High Price band)
Issue Size	17,82,069,000 Equity share of 10 each
Reserve for Anchor Investors	60% of allocation to Qualified institutional buyer
Reserve for Retails individual investors	Not less than 35%
Employees Reservation	50 lakhs

Anchor booking started on 15 january 2021 and IRFC already booked around 1400 crores rupees from them. From 18 Jan 2021, retail investor will also invest.

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IRFC IPO Timetable

IPO Open date	18 Jan2021
IPO closing date	20 Jan2021
Allotment date	25 Jan2021
Initiation of refund	27 Jan2021
Credit of shares to DEMAT	28 Jan2021
IPO listing on	29 Jan2021

If we talk about Retail investors like us. We can invest maximum of 13 lot in this IPO. Total 7475 shares of Rs 194350. Minimum investment is 14950 Rs of 1 lot consist of 575 shares.

IRFC IPO Reviews-

In our opinion, its financials are strong. Numbers are big and share is not costly (26 Rupees.) It has not been undervalued too. It’s a fair price of a share. We can invest in this IPO of Short-term gain. Means if you are getting 3k-4k profit per lot on listing date or later, sell it. Although it is my personal opinion and you are solely responsible for your Investment.

IRFC IPO FAQ’s-

1. How to apply in IRFC IPO Through Zerodha?

Zerodha customers can apply in IRFC IPO by choosing payment method as UPI. You have to access Zerodha console after login.

• Login to console
• Click on portfolio and IPO link
• Click on IRFC IPO and click bid button.
• Enter your UPI id, quantity and price
• Submit IPO form
• Visit UPI app and make the payment. Payment will be blocked till allotment.

• When IRFC IPO will open?

IRFC IPO will open on 18 Jan2021

• When IRFC IPO will close?

IRFC IPO will close on 21 Jan2021

• What is a lot size of IRFC IPO?

Lot size in IRFC IPO is 575 shares and minimum quantity for subscription is 575.

• When IRFC IPO will be allotted?

IRFC IPO will be allotted on25 Jan 2021.

• What is IRFC IPO listing date?

Most probably, it will be listed on 29 Jan 2021

For more related information, contact TAX ADVISORY and get the entire assistance on call.

By Arjun Mittal

Founder

Tax Advisory

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