Indian Railway Finance Corporation subscribed 25% on day 1 of IPO

Indian Railway Finance Corporation, the subsidiary of the Indian Railways has been subscribed 25 per cent so far on the first day of its IPO. The bidding data available on the exchanges showed that the offer has received bids for 38.39 crore equity shares against an IPO size of over 124.75 crore equity shares.

The above mentioned IPO size excluded the anchor book which already received a good response from investors. The company raised Rs 1390 crore of its total issue size of Rs 4,633 crore, through the anchor book.


The retail investors remained strong in the primary as well as a secondary market. The portion set aside for them has subscribed 60 per cent while the employee portion was subscribed 1.73 times on the first day itself. The reserved portion of non-institutional investors saw a subscription of 2.8 per cent, while qualified institutional investors have not put in their bids yet.

The 1,78,20,69,000 equity shares public issue consists a fresh issue of 1,18,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares by the President of India. The issue includes a reservation of Rs 50 lakh worth of shares for eligible employees.

The price band for the issue, which will close on January 20, has been fixed at Rs 25-26 per share.

IRFC, wholly-owned by the Government of India, is the dedicated market borrowing arm of the Indian Railways. Incorporated in 1986, it follows a financial leasing model to finance the acquisition of rolling stock assets, which includes locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies, etc.

IRFC reported revenue growth at a CAGR of 21 per cent and PAT 26 per cent during FY18-FY20. In FY20, IRFC reported PAT of Rs 3,192 crore on revenue of Rs 13,421 crore.