Indian Railway Finance Corporation (IRFC) follows a financial leasing model for financing the Rolling Stock Assets. The period of lease with respect to Rolling Stock Assets is typically 30 years, comprises a primary period of 15 years followed by a secondary period of 15 years, unless otherwise revised by mutual consent. IRFC also follow a leasing model for Project Assets, which typically provide for lease periods of 30 years.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Indian Railway Finance Corporation (IRFC) Issue Highlights:

IRFC IPO is a fresh Issue of 1,188,046,000 Equity Shares and Offer for sale of up to 594,023,000 Equity Shares. (The offer will constitute upto 13.64% of the post offer paid up Equity capital). Net Issue size of the IRFC IPO is Rs 4455 Cr – Rs 4633 Cr. No. of shares to be offered are 1,782,069,000 Equity shares. IRFC face value of the share is Rs 10. IRFC Employee Reservation: Equity Shares aggregating upto Rs 5 mn.

See Zee Business Live TV Streaming Below:

IRFC IPO price bank is Rs 25 – Rs 26 and the bid lot is 575 shares and in the multiple thereof. Post Issue Implied Market Cap of Indian Railway Finance Corporation will be Rs 32671 – Rs 33978 Cr. Book Running Lead Managers are DAM Capital, HSBC Securities, ICICI Securities, SBI Capital Markets and the Registrar is KFin Technologies.

Indian Railway Finance Corporation is Promoted by the President of India, acting through the Ministry of Railways (“MoR”), Government of India (“GoI”), Indian Railway Finance Corporation Limited (“IRFC”) was incorporated on December 12, 1986. IRFC is registered with the Reserve Bank of India as a NBFC (Systemically Important) and classified under the category of an “Infrastructure Finance Company”. IRFC was conferred with the 'Mini-Ratna Category-I' status in 2008.

IRFC is the dedicated market borrowing arm of the Indian Railways. Their primary business is financing the acquisition of rolling stock assets, leasing of railway infrastructure assets and national projects of the GoI (collectively “Project Assets”) and lending to other entities under the MoR.

Over the last 3 decades, IRFC has played a significant role in supporting the capacity enhancement of the Indian Railways by financing a proportion of their annual plan outlay. In Fiscal 2020, IRFC financed Rs71,392 cr accounting for 48.22% of the actual capital expenditure of the Indian Railways.

As of September 30, 2020, IRFC total AUM consisted of 55.34% of lease receivables primarily in relation to Rolling Stock Assets, 2.25% of loans to central public sector enterprises entities under the administrative control of MoR (“Other PSU Entities”), and 42.41% of advances against leasing of Project Assets.