Indian Railway Finance Corporation (IRFC) IPO: The first IPO of 2021 Indian Railway Finance Corporation (IRFC) is opening for investment today i.e. on 18 January. For the first time, the IPO of a PSU NBFC company is coming in the market. This IPO will be open for investment from January 18 to January 20. IRFC plans to raise Rs 4600 crore from the market. The company has fixed the price band for IPO at Rs 25-26 per share. Experts are also forming a positive opinion about this IPO. If you are also ready to earn from the IPO market in the new year, then know every detail of this issue…
What should be invested?
According to brokerage house Religare Broking, IRFC has an important contribution in the financing of Indian Railways. In the coming days, the government will focus on infrastructure and transport. Budget allocation for railways will also increase in the coming days. In such a situation, IRFC will have better financing opportunities. The company has a strong credit rating. CRISIL and CRISIL A1 + gave the company an AAA rating. According to the brokerage, the company’s financial performance is also better. Revenue and profit grew by 21% and 26% CAGR during FY18-20. Overall, the company’s long-term outlook is better. Long-term investors should invest in it.
Raised Rs 1389 crore from anchor investors
IRFC has raised Rs 1389 crore from 31 anchor investors. IRFC has informed the stock market that it has allotted 53.45 crore equity shares to Anchor Investors at a price of Rs 26 per share on Friday 15 January. 178 crore shares have been kept for a subscription. The anchor investors of IRFS include Goldman Sachs, BNP Paribas, Kuwait Investment Authority and Monitoring Authority. All these 53.45 crore shares have been allocated.
Price band, launch date
The price band for the IPO of IRFC has been fixed at Rs 10 to Rs 25-26 per share. IRFC’s IPO will be launched on January 18. You can invest in it till 20 January. This IPO will be of 178.20 crore shares. In this, 118.80 crore new shares will be issued, while the government will bring a sales offer of 59.40 crores. IRFC had submitted the documents for the IPO in January 2020.
How much investment will have to be made?
In this issue, it will be necessary to bid for at least 575 equity shares. That means there will be a lot of 575 shares. Money can be put in an IPO for a maximum of 13 lots. In the IPO of IRFC, 50 per cent of the issue is reserved for qualified institutional buyers (QIB). While 15 per cent for non-institutional buyers. 35 per cent is the reserve for retail investors.
Strategic role in the growth of Indian Railways
Strong credit rating: CRISIL: AAA / A1 + and ICRA: AAA / A1 +.
Strong Financial Performance and Sound Asset Liability Management
Experienced management team
About the company
IRFC was formed in 1986 and acts as a dedicated financial arm for the Indian Railways. The company also raises funds for the railways from domestic and foreign markets. Extra budgetary expenses for the railways are arranged by the company. The schedule is an ‘A’ listed company under the IRFC Ministry of Railways. In 2017, the Union Cabinet had approved 4 more companies related to IRFC and Railways to be listed in the market.