Indian Railway Finance Corporation Limited

Founded in 1986, the Indian Railway Finance Corporation (IRFC) is a non-banking financial company (NBFC) that was started by the government to finance the Indian Railways. Further, the company leases railway infrastructure assets and national projects of the Government of India and lends to other public and private companies working under the Ministry of Railways. The company has a near-monopoly in the railway-financing space. For instance, in FY17, FY18 and FY19, the NBFC financed 72%, 93% and 82% of the Indian Railway’s total rolling stock. As of 30 September 2020, the total value of rolling stock assets financed by IRFC stood at ₹2.3 lakh crore. IRFC is a wholly-owned entity of the Government of India, and functions under the Railway Ministry. Through this initial public offer, the government will sell 178.21 crore equity shares, totalling to over ₹4,200 crore. The IPO comprises a fresh issue of 118.80 crore equity shares, and an offer for sale of 59.4 crore equity shares. The public issue is part of the government’s target to raise ₹2.1 lakh crore via disinvestments.