Indian Railway Finance Corporation Limited
All Investors shall mandatorily use only Application Supported by Blocked Amount (ASBA) facility for making payments.
| Indian Railway Finance Corporation Limited | |
|---|---|
| “*As per SEBI circular no SEBI/HO/CFD/DIL2/CIR/P/2019/76 dated June 28,2019, all Syndicate Members / Registered Stock Brokers / DPs / RTAs shall use Unified Payments Interface (UPI) as a mandatory payment mechanism for bid amounting to Rs. 2 Lakhs and below for applications in public issues by retail individual investors and Share Holders. | |
| *All Other Category of investors shall mandatorily use only Application Supported by Blocked Amount (ASBA) facility for making payments.” | |
| Symbol | IRFC |
| Issue Period | 18-Jan-2021 to 20-Jan-2021 |
| Post issue Modification Period | 21-Jan-2021(10.00 A.M. to 11.00 A.M.) |
| Cut-off time for UPI Mandate Confirmation | 21-Jan-2021(upto 12:00 PM) |
| Issue Size | “Initial Public offer up to 1,78,20,69,000 equity shares of face value of Rs. 10 each (Equity Shares) comprising of a fresh issue of up to 1,18,80,46,000 Equity Shares (Fresh Issue) and an offer for sale of up to 59,40,23,000 Equity Shares” |
| Issue Type | 100% Book Building |
| Price Range | Rs.25 to Rs. 26 |
| Face Value | Rs 10 |
| Tick Size | Re 1 |
| Bid Lot | 575 Equity Shares and in multiples thereof |
| Minimum Order Quantity | 575 Equity Shares |
| Maximum Subscription Amount for Retail Investor | “Rs. 2,00,000” |
| Maximum Subscription Amount for Eligible Employee | “Rs. 5,00,000” |
| Maximum Bid Quantity for QIB Investors | “1,24,73,13,575 equity shares in multiple of 575 Equity Shares” |
| Maximum Bid Quantity for NIB Investors | “89,09,37,775 equity shares in multiple of 575 Equity Shares” |
| IPO Market Timings | 10.00 a.m. to 5.00 p.m. |
| Book Running Lead Managers | “DAM Capital Advisors Limited (formerly known as IDFC Securities Limited), HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, SBI Capital Markets Limited” |
| Sponsor Bank | ICICI Bank Limited |
| Categories | “FI, IC, MF, FII, OTH, CO, IND, NOH, IND and EMP |
| SR. NO. | CATEGORY | NO OF SHARES OFFERED/ RESERVED | NO OF SHARES BID FOR | NO OF TIMES OF TOTAL MEANT FOR THE CATEGORY |
|---|---|---|---|---|
| 1 | Qualified Institutional Buyers(QIBs) | 35,63,75,339 | 17,31,83,100 | 0.49 |
| 1(a) | Foreign Institutional Investors(FIIs) | – | 4,64,43,325 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | 4,64,43,325 | – |
| 1(c) | Mutual funds | – | – | – |
| 1(d) | Others | – | 1,01,93,025 | – |
| 2 | Non Institutional Investors | 26,72,81,504 | 8,70,69,375 | 0.33 |
| 2(a) | Corporates | – | 1,54,69,800 | – |
| 2(b) | Individuals(Other than RIIs) | – | 6,10,98,350 | – |
| 2(c) | others | – | 1,05,01,225 | – |
| 3 | Retail Individual Investors(RIIs) | 62,36,56,843 | 92,18,54,950 | 1.48 |
| 3(a) | Cut Off | – | 65,74,18,775 | – |
| 3(b) | Price bids | – | 26,44,36,175 | – |
| 4 | Employees | 1,92,307 | 6,30,200 | 3.28 |
| 4(a) | Cut Off | – | 3,37,525 | – |
| 4(b) | Price Bids | – | 2,92,675 | – |
| – | Total | 1,24,75,05,993 | 1,18,27,37,625 | 0.95 |
| Total Issue Size | 1,24,75,05,993 |
| Total Bids Received | 3,21,26,44,600 |
| Total Bids Received at Cut-off price | 65,77,56,300 |
| No. of times issue is subscribed | 2.58 |
| Price >= | 25 | 26 | Cut-Off |
| No of Share | 1,18,27,61,200 | 1,17,15,55,600 | 65,77,56,300 |
IRFC will utilise fresh issue proceeds for augmenting the equity capital base to meet the future capital requirements arising out of growth in the business and general corporate purposes.
IRFC operates on an almost no-risk business model because of sovereign exposure. “Risk related to foreign currency hedging cost or hedging cost for interest rate fluctuation are built into the weighted average cost of borrowing (WACB) of which IRFC earns a margin as determined by Ministry of Railways. Even, lease payments by Ministry of Railways (MoR) form part of the annual railway budget in the Union Budget of India,” said Choice Broking.
Further, as per the agreement, MoR will pay lease rental in advance in case of difficulties experienced by IRFC in debt servicing. Though, very low-risk profile with fixed spread over WACB also limits the NIM as well as return on equity (RoE) expansion. The company is assigned with AAA stable rating helping it to keep the cost of borrowing low.
As IRFC deals with MoR, the company has nil gross non-performing assets (NPA) as of first half of FY21. Capital adequacy ratio stood at 434 percent as no-risk weight attached to sovereign exposure.
