All you need to know about

Indian Railway Finance Corporation Ltd IPO

Issue Details

Issue Amount : ` 4,455 - ` 4,633 Crores

Total shares for sale : Upto 178,20,69,000 Equity Shares
Issue Period : Jan 18, 2021 - Jan 20, 2021
Face Value : �` 10 per share
Price Band : ` 25 to ` 26
Lot Size : �575 shares and in multiple thereafter

Source : BRLM

Offer Breakup
Category Allocation Issue size (Shares) Issue size (₹ in Cr)

Lower Band Upper Band Lower Band Upper Band

QIB 50% 89,09,38,346 89,09,34,500 2,227.3 2,316.4

NIB 15% 26,72,81,504 26,72,80,350 668.2 694.9

Retail 35% 62,36,56,843 62,36,54,150 1,559.1 1,621.5

Total 100% 1,78,18,76,693 1,78,18,69,000 4,455 4,633

Source : BRLM. Employee portion excluded in table

IPO timeline `
Issue opens on:
Monday Jan 18 2021 `

18
Issue closes on:
Wednesday Jan 20 2021

JANUARY

25th Finalization of 27th Refunds/Unblocking

JAN 2021 basis of allotment JAN 2021 ASBA fund

28th Credit of equity 29th Trading

JAN 2021 shares to DP account JAN 2021 commences

Source : BRLM. Date are tentative

The objective of the offer

01 Augmenting their equity capital base to meet their future

capital requirements arising out of growth in business

02 General corporate purposes

Additionally, IRFC expects to achieve the benefits of

listing of their Equity Shares on the Stock Exchanges
and enhancement of their Company’s brand name
and creation of a public market for their Equity
Shares in India.

Source : RHP and DRHP

`
About the company
The Company was incorporated as Indian Railway Finance Corporation
Limited on December 12, 1986, as a public limited company. It's the
dedicated market borrowing arm of the Indian Railways and is
wholly-owned by the Government acting through the Ministry of Railways
(MoR) and registered with the RBI as an NBFC-ND-IFC. Their primary
business is financing the acquisition of Rolling Stock Assets (wagons,
trucks, electric multiple units, locomotives, coaches) and Project Assets of
the Indian Railways and lending to other entities under the MoR. Over the
last three decades, they have played a significant role in supporting the
capacity enhancement of the Indian Railways by financing a proportion of
its annual plan outlay. In Fiscals 2017, 2018, 2019 and 2020 (revised
estimate), they were responsible for financing 72%, 93%, 84% and 76%
respectively, of the Indian Railway’s total rolling stock (Source: Ministry of
Railways). The total value of Rolling Stock Assets financed by us as of
March 31, 2020 and as of September 30, 2020 was ₹ 223,810.78 Cr and ₹
234,627.17 Cr, respectively, while the value of Rolling Stock Assets financed
in Fiscal 2020 and in the six months ended September 30, 2020, was ₹
33,544.11 Cr and ₹ 10,816.38 Cr, respectively.

Awarded “Mini Ratna Category I” status in 2018

Awarded “Best Growth Performance-Financial Services” and

“Best Miniratna in Services” at the PSU Awards 2019,
organised by dun & bradstreet.

IRFC has received the highest credit ratings from CRISIL – CRISIL AAA and
CRISIL A1+, ICRA 104 – ICRA AAA and ICRA A1+, and CARE – CARE AAA and
CARE A1+. They have also been accorded with Baa2 (Negative) rating by
Moody’s, BBB- (Stable) rating by Standard and Poor’s, BBB- (Stable) rating
by Fitch and BBB+ (Stable) rating by Japanese Credit Rating Agency that are
on par with India’s sovereign ratings.

Source : RHP and DRHP

Strengths

Strategic role in Competitive cost of borrowings Consistent financial

financing growth of based on strong credit ratings performance and
Indian Railways in India and diversified sources cost plus model
of funding

Low risk Strong Experienced senior

business model asset-liability management and
management committed team
Source : RHP and DRHP

Risks

Revenue dependency Negative or Disruption in funding

on Indian Railways’s slow growth of sources and higher
business. New funding Indian Railways will funding cost will impact
avenues will have have adverse impact business negatively
a negative impact.

%
` ` `

Mismatch in the tenor of Any downgrade in their Unfavorable margin on

their leases and borrowings credit ratings or India’s Rolling stock assets leased
may lead to reinvestment debt rating could increase can impact financial
and liquidity risk their finance costs condition and operation

Source : RHP and DRHP

 Important Financials Data
Total revenue from operations increased by 19.33% from ₹ 9207.8 Cr
in Fiscal 2018 to ₹ 10,987.35 Cr in Fiscal 2019 and by 22.15% to ₹
13,421 Cr in Fiscal 2020, and was ₹ 7,384.8 Cr in the six months
ended September 30, 2020.

Return on net worth for Fiscals 2018, 2019 and 2020 was 12.33%,
9.47% and 11.57% respectively.

EBITDA increased by 22% from ₹ 10,939 Cr in Fiscal 2019 to ₹ 13,355

Cr in Fiscal 2020.

(in ` Crore)
HY Apr - Sep HY Apr - Sep FY March FY March FY March
2020 2019 2020 2019 2018

Total Assets 2,91,987 2,38,278 2,75,504 2,06,438 1,61,451

Total Revenue 7,385 6,575 13,421 10,987 9,208
from operations
7328 6,568 13,355 10,939 9,170
EBITDA

Profit after Tax 1,887 1,630 3,192 2,140 2,001

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 13,421 10,987 9,208

Revenue Growth (%) 22.15 19.33 15.7

EBITDA 13,355 10,939 9,170

Net Profit for the period 3,192 2,140 2,001

Net Profit as % to Revenue 24 19.5 22

Basic EPS (Rs ) 3.4 3.26 3.07

RONW (%) 11.57 9.47 12.33

Source : RHP

The Company does not have any listed industry peers in India
Source : RHP
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Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing. SEBI Registration no.-INZ000240532, BSE-6707,
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