Everything You Need to Know About IRFC IPO

Indian Railway Finance Corporation (IRFC) is the finance arm of Indian Railways, IRFC is responsible for raising the finance necessary for expansion and running of Indian Railways through capital markets and other borrowings.

IRFC is wholly-owned by the Government of India acting through the MoR (Ministry of Railways), registered with the Reserve Bank of India as a NBFC and classified as an Infrastructure Finance Company.

IRFC’s primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the Ministry of Railways. In Fiscal 2019, IRFC financed Rs. 525.35 billion accounting for 39.38% of the actual capital expenditure of the Indian Railways.

In Fiscal 2017, 2018 and 2019, IRFC was responsible for financing 72%, 93% and 82%, of the Indian Railway’s total rolling stock.

The size of public offer comprises of around 178 crore equity shares, which includes fresh issuance of 118 crore equity shares and an offer for sale of 60 crore equity shares by the Government of India. For more information you can read the IPO Prospectus filed by the company.

Indicative Timetable

Event Date
Issue Period 18th January 2021 - 20th January 2021
Price Range 25 - 26
Minimum Bid Quantity 575 and in multiples thereof
Finalisation of Allotment 25th January 2021
Initiation of Refunds 27th January 2021
Credit of Shares 28th January 2021
Listing 29th January 2021

How do I apply for the IRFC IPO?

You can apply for the IRFC IPO using any supported UPI app by following two steps:

  • Enter your bid on Console
  • Accept UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

Will the money get debited from the bank account or will it just get locked?

Funds are blocked in your bank account until allotment, if you get the allotment same will be debited, if not funds are released back into your Bank account.

@ShubhS9
i can apply more than 1 IPO in different trading platforms?

like zerodha,Upstox?

is it possible?

Hi Mahesh, you can only make one IPO application per PAN. If you make multiple applications, all your applications may get rejected by the RTA. (Registrar & Transfer Agent) .

P.S. In some IPOs where there is more than one eligible category to apply, you can make multiple applications - read more.

tnq @mohitmehra

@ShubhS9 @mohitmehra What if the reserved shares for each category is not subscribed more than 1 time(s)?

For example below Anthony Waste got subscribed only 0.28 times in Non Institutional Investors Category. Does it mean 100% allotment for everyone who subscribed under that category?

In case of under-subscription, if any, in any category, except in the QIB Portion, would be allowed to be met with spill over from any other category or combination of categories of Bidders, in consultation with the BRLMs and the Designated Stock Exchange subject to receipt of valid Bids received at or above the Offer Price.

In case if there is under-subscription, in the QIB Portion, would not be allowed to be met with spill-over from any other category or a combination of categories.

Yes, those who have bid will receive 100% allotment.

1 Like

I received this message from HDFC bank

You have received a UPI-Mandate request from INDIAN RAILWAY FINAN for Rs 14375.00. Login to your UPI app and authorize the block. Application No. IRFCAZ257047142839

What UPI App does it mean?

Is minimum bid of Rs 25 ok?

Which UPI app you are using? Like BHIM, PhonePe, Google Pay.

Google Pay, Amazon Pay, PhonePe…

I didn’t get any message in Google Pay

Sometimes it can take upto end of the day to receive the mandate.

Thank you so much for the reply. @ShubhS9.

I could see that the IRFC Non Institutional Investors Category has been under subscribed as of today 0.24 times (19th Jan)

Is it possible to get full allotment if NII was under subscribed even tomorrow. i.e. 0.99 times

  1. If yes, I have already applied under RII category, the amount has been blocked after successful mandate. Will they consider my application if I delete my bid and reapply in NII category? Or will it be considered as duplicate entry.

If category is under-subscribed you should get full allotment.

You can delete your application and apply from NII category, no issues.

In NII category you can apply through Netbanking ASBA and your bid should be greater than 2 lakhs