IRFC
Mainboard₹4,633 Cr issue
-3.85%
Listing gain over issue price
Issue size
₹4,633 Cr
1 lot at cut-off
₹14,950
Lot size
575shares
Open
18 Jan 2021
Close
20 Jan 2021
Allotment
25 Jan 2021
Listing
29 Jan 2021
Listing performance
Issue price
₹26
Listed at
₹25
Listing-day close
₹24.85
Latest price
₹74.45
Close on 23 Oct 2026
Listing gain
-3.85%
Return since issue
+186.35%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Jan 2021 – 20 Jan 2021
- Listing date
- 29 Jan 2021
- Face value
- ₹10 per share
- Issue price
- ₹26 per share
- Lot size
- 575 shares
- Total issue size
- ₹4,633 Cr
- Market cap at offer price
- ₹33,978 Cr
- Promoter holding
- 100.00% → 86.00% pre-issue → post-issue
- ISIN
- INE053F01010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- HSBC Securities & Capital Markets (India) Pvt.Ltd.
- Registered office
- UG-Floor, East Tower, NBCC Place, Bisham Pitamah Marg, Pragati Vihar, Lodhi Road, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 53,45,63,007 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 575 shares per lot, in multiples, at ₹26
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 575 | ₹14,950 |
| Retail (max) | 13 | 7,475 | ₹1,94,350 |
| S-HNI (min) | 14 | 8,050 | ₹2,09,300 |
| S-HNI (max) | 66 | 37,950 | ₹9,86,700 |
| B-HNI (min) | 67 | 38,525 | ₹10,01,650 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
53,45,63,007
Anchor portion
₹1,390 Cr
at ₹26 per share
Valuation and performance
Valuation at offer price
₹26 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹33,978 Cr |
About IRFC
Indian Railway Finance Corporation Limited (IRFC) was incorporated on December 12, 1986, as a public limited company. It is classified as a Public Financial Institution and registered with the RBI as a Non-Banking Financial Company – Non-Deposit accepting Infrastructure Finance Company (NBFC-ND-IFC). The company's primary business is financing the acquisition of Rolling Stock Assets and Project Assets of the Indian Railways and lending to other entities under the Ministry of Railways. Over the last three decades, it has played a significant role in supporting capacity enhancement of the Indian Railways by financing a proportion of its annual plan outlay. The company earns revenue primarily through leasing Rolling Stock Assets to the Indian Railways, receiving lease rentals that include the value of assets, the weighted average cost of incremental borrowing, and a margin determined by the MoR in consultation with IRFC.
Company Analysis
from RHPIndian Railway Finance Corporation Limited is a dedicated market borrowing arm of Indian Railways that finances the acquisition of rolling stock and railway infrastructure assets through leasing arrangements.
Indian Railway Finance Corporation Limited (IRFC) was incorporated on December 12, 1986, as a public limited company. It is classified as a Public Financial Institution and registered with the RBI as a Non-Banking Financial Company – Non-Deposit accepting Infrastructure Finance Company (NBFC-ND-IFC). The company's primary business is financing the acquisition of Rolling Stock Assets and Project Assets of the Indian Railways and lending to other entities under the Ministry of Railways. Over the last three decades, it has played a significant role in supporting capacity enhancement of the Indian Railways by financing a proportion of its annual plan outlay. The company earns revenue primarily through leasing Rolling Stock Assets to the Indian Railways, receiving lease rentals that include the value of assets, the weighted average cost of incremental borrowing, and a margin determined by the MoR in consultation with IRFC.
infrastructure financerailways financingasset financenon-banking financial services
Objects of the Issue
- Augmenting equity capital base to meet future capital requirements arising out of growth in business ₹30,118.76 million p.20
- General corporate purposes ₹500.00 million p.20
- Augmenting our equity capital base to meet our future capital requirements arising out of growth in our business ₹30,118.76 million p.80
- General corporate purposes ₹500.00 million p.80
- The document does not contain a specific 'Objects of the Offer' section detailing the uses of IPO proceeds.
- Repayment of borrowings
- Funding railway infrastructure projects and rolling stock acquisition ₹1,135.67 billion for Fiscal 2021 p.282
- Not explicitly stated in this document section - Objects of the Offer section not present in this part
Issue Structure
- Total Issue
- 1,782,069,000 Equity Shares aggregating to ₹46,333.79 million
- Fresh Issue
- 1,188,046,000 Equity Shares aggregating to ₹30,889.20 million
- Offer for Sale
- 594,023,000 Equity Shares aggregating to ₹15,444.60 million
- Price Band
- ₹25.00 to ₹26.00 per Equity Share (Issue Price: ₹26.00)
- Lot Size
- 575 Equity Shares and in multiples of 575 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company operates on a cost-plus based model. It receives lease rentals from the Ministry of Railways which include the value of Rolling Stock Assets leased in the relevant fiscal year, the weighted average cost of incremental borrowing, and a margin determined by the MoR in consultation with IRFC. The lease rentals are calculated as equal half-yearly payments to ensure IRFC's obligation to repay and settle its debts is fully met during the primary lease period of 15 years.
Business Segments
Leasing of Rolling Stock Assets (locomotives, coaches, wagons, electric multiple units, etc.) to the Indian Railways
Financing of Project Assets including railway infrastructure assets and national projects funded through Extra Budgetary Resources (Institutional Financing)
Financing the acquisition of rolling stock assets including locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes and other rolling stock components through financial lease arrangements typically for 30 years (15-year primary period and 15-year secondary period)
Leasing of railway infrastructure assets and national projects of the Government of India, and lending to other entities under the Ministry of Railways
Finances and leases locomotives, coaches, wagons, and track machines to Ministry of Railways
Finances railway infrastructure projects including doubling, electrification, and projects executed by RVNL and entities under EBR-IF
Provides debt financing to other central public sector enterprises under administrative control of Ministry of Railways, including RVNL and IRCON
The company's sole reporting segment encompasses borrowing funds from financial markets and financing the acquisition/creation of railway infrastructure assets which are leased to Indian Railways as finance leases.
The Company has identified 'Leasing and Finance' as its sole reporting segment, comprising finance lease transactions of rolling stock and railway infrastructure assets with the Ministry of Railways, as well as loans to Rail Vikas Nigam Limited and IRCON International Limited.
Financing the acquisition and leasing of powered and unpowered railway vehicles including locomotives, coaches, wagons, electric multiple units, cranes, and trollies to the Ministry of Railways
Financing of railway infrastructure assets and national projects of the Government of India through advances and leasing arrangements
Debt financing extended to Other PSU Entities (RVNL and IRCON) which are entities under the Ministry of Railways
The company does not have separate reportable business segments. It is engaged in the single business of leasing and financing.
SWOT Analysis
Strengths
- • Dedicated market borrowing arm of Indian Railways with 34+ years of operations(p.20)
- • Strong domestic credit ratings from leading agencies(p.28)
- • Consistent profitability with growing revenue from operations(p.21)
- • Strong asset growth trajectory(p.31)
- • Dedicated market borrowing arm for Indian Railways with strategic role in railway financing(p.106)
- • Established 30-year track record financing railway rolling stock and infrastructure(p.106)
- • Consistent profitability with strong operational margins(p.85)
- • Low-risk, cost-plus business model with stable government counterparty(p.85)
- • Diversified funding sources with competitive cost of borrowing(p.85)
- • Dominant market position in Indian Railways financing with consistent funding contributions(p.108)
- • Diversified and cost-effective funding sources across domestic and international markets(p.108)
- • Highest credit ratings from all major domestic and international rating agencies(p.109)
- • Cost-plus leasing model with MoR ensuring stable, predictable margins(p.110)
- • Minimal credit risk with sovereign backing and historical absence of defaults(p.110)
- • Consistent profitability and strong earnings growth(p.109)
- • Low operational overhead and high efficiency in business model(p.110)
- • Strong asset-liability management minimizing liquidity and interest rate risks(p.110)
- • Dedicated financing arm for Indian Railways with sovereign backing(p.281)
- • Highest credit ratings from all major domestic and international rating agencies(p.283)
- • Zero non-performing assets and excellent asset quality(p.283)
- • Diversified and stable funding sources(p.282)
- • Strong revenue growth trajectory(p.283)
- • Exemption from key regulatory provisioning requirements(p.288)
Weaknesses
- • Extreme concentration in single customer—99.75% of revenue from Indian Railways(p.25)
- • Dependence on Standard Lease Agreement executed after fiscal year-end with no assurance of execution(p.28)
- • Margin compression risk on Rolling Stock Assets financing(p.26)
- • Asset-liability mismatch risks between lease tenor and borrowing structure(p.27)
- • Non-compliance with SEBI Listing Regulations on Board composition(p.31)
- • Statutory Auditors lack valid peer review certificate from ICAI(p.27)
- • High leverage with total borrowings of ₹2.45 trillion(p.37)
- • Unregistered title to Registered and Corporate Office premises(p.42)
- • Governance gaps including lack of Chief Risk Officer(p.31)
- • High leverage with debt-to-equity ratio of 7.74, constraining financial flexibility(p.81)
- • Complete dependence on Ministry of Railways as primary customer and asset source(p.106)
- • Concentrated revenue exposure to single customer (Ministry of Railways)(p.106)
- • Minimal operational control over leased rolling stock assets(p.106)
- • Heavy concentration of business with single customer (Ministry of Railways)(p.107)
- • Significant leverage and high debt-to-equity ratios(p.109)
- • Unregistered title to corporate office premises creating legal uncertainty(p.124)
- • Lease agreements with MoR executed after fiscal year-end creating execution risk(p.112)
- • Pending lease agreements for project asset financing with undefined terms(p.160)
- • Small employee base limiting organizational capacity and resilience(p.124)
- • Dependence on single customer (Ministry of Railways)(p.175)
- • High leverage and debt-dependent business model(p.170)
- • Concentration in lease receivables from sovereign entity(p.196)
- • IT systems not Ind AS compliant(p.167)
- • Heavy dependence on single customer (Ministry of Railways)(p.224)
- • High debt-to-equity ratio indicating substantial leverage(p.232)
- • Prior period material adjustments indicating historical accounting issues(p.243)
- • Exposure to service tax contingent liability from GST department(p.224)
- • Execution of lease agreements with Ministry of Railways still pending for infrastructure assets(p.242)
- • Very high leverage ratio with borrowings to equity of 7.74:1(p.280)
- • Complete dependence on single customer (Ministry of Railways)(p.285)
- • Inability to obtain finance cost recovery from borrowers independently(p.286)
- • Rising finance costs impacting profitability(p.303)
- • Material prior period accounting adjustments indicating control issues(p.298)
- • Significant dependence on Indian Railways as sole customer(p.332)
- • Unfixed office building ownership; land remains on leasehold status(p.329)
- • Pending lease agreements for major infrastructure project financing(p.330)
- • Outstanding disputed tax liabilities across multiple years(p.330)
- • Reliance on MoR certification for physical asset verification(p.329)
Opportunities
- • Increased government capex allocation for railways modernization(p.20)
- • Growing borrowing target from Ministry of Railways(p.20)
- • Potential financing of Dedicated Freight Corridors and High Speed Railway projects(p.4)
- • Equity capital base expansion to support future business growth(p.20)
- • Substantial planned capital expenditure increases for Indian Railways(p.106)
- • Growth in rolling stock financing needs from electrification and fleet expansion(p.95)
- • Increased infrastructure investment through dedicated freight corridors and network expansion(p.98)
- • Growing locomotive and rolling stock procurement from electrification targets(p.100)
- • National Infrastructure Pipeline commitment with ₹1.37 trillion railway capex planned through 2025(p.92)
- • Expansion of project asset financing portfolio beyond Rolling Stock Assets(p.111)
- • Financing for joint venture entities with State governments for railway infrastructure(p.112)
- • Forward and backward linkage businesses supporting railway sector(p.112)
- • Expansion into advisory, consultancy and syndication services(p.112)
- • Growing Indian Railways capital expenditure plans providing funding demand(p.108)
- • Diversification of borrowing portfolio including green bonds and innovative instruments(p.111)
- • Expansion of Railway Infrastructure financing(p.163)
- • GST Input Tax Credit recovery on Railway Projects(p.163)
- • Growth in leasing to Ministry of Railways and infrastructure assets(p.223)
- • Expansion of advance funding for railway infrastructure projects(p.242)
- • Increasing National Projects funding mandate(p.242)
- • Increased capital expenditure allocation for Indian Railways(p.281)
- • Growing MoR borrowing requirement and financing target(p.282)
- • Expansion of railway network and electrification(p.285)
- • Growing AUM with significant expansion in Project Asset financing(p.282)
- • Potential for increased financing volume for rolling stock acquisition(p.282)
- • Continued growth and modernization of Indian Railways(p.332)
Threats
- • Intense competition from road, sea, and air transport sectors(p.26)
- • Risk of Indian Railways corporatization or direct borrowing(p.25)
- • Slowdown in Indian railway sector growth(p.26)
- • Non-availability of LIC funding for EBR-IF projects(p.29)
- • Downgrade risk in India's sovereign credit ratings affecting borrowing costs(p.29)
- • Currency depreciation risk on foreign currency borrowings(p.38)
- • Liquidity constraints in debt capital markets(p.26)
- • Regulatory changes by RBI affecting NBFC operations(p.31)
- • COVID-19 pandemic impact on railway operations and funding demand(p.34)
- • GST litigation exposure of ₹26.5 billion(p.40)
- • Restrictions on raising foreign currency borrowings(p.32)
- • Indian economic slowdown reduces railway freight and passenger demand(p.46)
- • Global economic uncertainty and capital markets volatility impacting financing costs(p.47)
- • Regulatory changes in Indian tax and policy environment affecting operations(p.47)
- • Natural disasters, pandemics and geopolitical events disrupting railway operations(p.46)
- • High inflation in India increases costs without proportionate revenue increase(p.48)
- • Instability in Indian financial sector affecting funding access and borrowing costs(p.48)
- • Dependence on MoR funding targets and budget allocation decisions(p.107)
- • Regulatory changes and withdrawal of exemptions from prudential norms(p.122)
- • Interest rate fluctuation risks affecting borrowing costs and spreads(p.123)
- • Foreign exchange risk on external commercial borrowings and overseas bonds(p.122)
- • Potential liquidity constraints if MoR fails to meet lease payment obligations(p.110)
- • Competition in infrastructure financing and fundraising landscape(p.111)
- • Regulatory changes in income tax provisions affecting tax efficiency(p.163)
- • Changes in Reserve Bank of India norms on asset classification and provisioning(p.169)
- • Prior period adjustment liability related to lease receivables(p.164)
- • Foreign exchange risk from external commercial borrowings(p.235)
- • Interest rate volatility affecting borrowing costs(p.236)
- • Regulatory uncertainty regarding GST on lease transactions(p.242)
- • COVID-19 pandemic impact on economic activity and business operations(p.243)
- • Dependency on government policy and support for Indian Railways sector growth(p.285)
- • Volatility in interest rates affecting cost of borrowings(p.324)
- • Foreign exchange fluctuation risk on external commercial borrowings(p.324)
- • Regulatory changes and compliance requirements for NBFCs(p.288)
- • Adverse conditions in global and Indian credit markets(p.286)
- • Inflation impacting overall business environment(p.325)
- • Dependence on GoI initiatives and railway sector policies(p.332)
- • Exposure to Government of India ownership and control requirements(p.338)
- • Substantial financial leverage and debt obligations(p.333)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| President of India, acting through the Ministry of Railways | Promoter and Selling Shareholder | 100.00% | 86.36% |
| President of India, acting through the Ministry of Railways | Promoter | 100.00% | 86.36% |
| President of India, acting through Ministry of Railways | Promoter | 100% | 86.36% |
| The President of India and his nominees (through Ministry of Railways) | Promoter | 100% | — |
| Ministry of Railways, Government of India | Promoter/100% shareholder | — | — |
| President of India (through Ministry of Railways) | Promoter | — | — |
| Government of India | Promoter/Sole Owner | 100% | — |
| Ministry of Railways/Government of India | Selling Shareholder/Promoter | — | 20% (minimum promoter's contribution as stated in approval) |
| President of India, acting through the Ministry of Railways | Selling Shareholder | — | 20% of post Issue paid-up Equity Share capital (minimum) |
Leadership
Not disclosed in this section · Chairman and Managing Director
Not disclosed in this section · Director (Finance) and Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
IRFC IPO FAQs
What is the lot size of IRFC IPO?
The minimum lot size of IRFC IPO is 575 shares. One lot costs ₹14,950 at the cut-off price.
When does IRFC IPO open and close?
IRFC IPO opened for subscription on 18 Jan 2021 and closed on 20 Jan 2021.
What is the listing date of IRFC IPO?
IRFC IPO listed on 29 Jan 2021.