The allotment status of Rs 300 crore initial public offer (IPO) of IRFC will be announced today. The equity shares are proposed to be listed on BSE and NSE.
The Rs 4,633 crore IPO of Indian Railway Finance Corporation Limited (IRFC) was subscribed nearly 3.5 times on last day. The share sale was open between 18 and 20 January at a price range of Rs 25-26 apiece. Ahead of the IPO, IRFC had raised about Rs 1,400 crore from anchor investors.
IRFC IPO's objective is to augment the company's equity capital base to meet business future growth requirements. The government plans to reduce its stakeholding in IRFC to 86% from 100% from the IPO. The issue includes a reservation of Rs 50 lakh worth of shares for eligible employees.
Applicants of the issue can check the status of their allotment on the website of KFin Technologies Private Limited, the registrar to the issue or the BSE website.
Here's how to check IRFC IPO allotment status
On KFin Technologies Private Limited,
- Go to the online portal of KFin Technologies
-Click on the drop-down menu and select the company name IRFC in the drop-down menu of the investor's centre section.
- Enter your Permanent Account Numbers (PAN) or application number or Client ID.
- After entering the given captcha code, investors can click on the submit button and view their allotment status.
Applicants can also check their IPO allotment status on the BSE website
-Select Equity and then from the dropdown, select issue name "IRFC"
-Enter your Permanent Account Numbers (PAN) or application number and click Search button
Through the application status, investors can see the number of shares subscribed during the IPO, and the shares allotted on the page.
The share sale that is offering up to 178.2 crore shares of face value of Rs 10 each, comprises a fresh issue of up to 118.8 crore shares and an offer for sale of up to 59.4 crore equity shares by the government.
Most brokerages have given IRFC subscribe rating, especially for the long term. The Rs 4,600-crore IPO of IRFC, offering up to 178.2 crore shares at a price band of Rs 25 to Rs 26, appears to rank better in terms of IPO valuation and growth prospects. The company also has a low-risk profile since it caters to the Indian Railways and other Public sector Undertakings. IRFC has a stable balance sheet and has diversified sources of funding.
Nirali Shah, Senior Research Analyst, Samco Securities said," IRFC is the first IPO to hit Dalal Street in the calendar year 2021 which is a direct play on the growth of Indian railways. The Company's leases and loans are backed by MOR and that's why it has reported nil NPAs for the quarter ended September 2020. IRFC's AUM has also grown at a 20% CAGR from 2018 to 2020."
She added," However, despite being the primary lender to the Indian Railways the company comes with its own set of risks. Firstly, it is highly dependent on the ministry of Railways for its margins and any adverse determination of the margin will also impact its profitability. Additionally, there is a possibility that its cost of funds may rise in the future. Keeping these inherent risks in mind, we feel investors should assess their own risk appetite and then decide to go for the IPO."
"IRFC has strong fundamentals and has delivered good growth in recent years. It has a low-risk profile since it caters to the Indian Railways and other Public sector Undertakings. Moreover, it has a low cost of borrowing and diversified sources of funding. At the higher end of the price band, IRFC IPO is attractively priced at 1x the FY20 book value per share. Given strong business fundamentals and good growth prospects, we remain positive on the prospects of the issue," INDmoney said in a report.