This post on IRFC IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to IRFC IPO or not.
Related Posts : IRFC IPO Review
IRFC IPO: Grey Market Premium etc.
- 19-01-21 GMP 80-90 paisa
- 18-01-21 GMP Rs. 1-1.1 , Kostak: 400- 425
IRFC IPO: Anchor Investors
IRFC garnered Rs 1,389 crore from 31 anchor investors and has allocated 53.45 crore equity shares at Rs 26 per share. This includes Goldman Sachs, BNP Paribas, Kuwait Investment Authority, and Monetary Authority of Singapore. Monetary Authority of Singapore picked 4.15% for Rs 57.62 crore. BNP Paribas picked 3.24% of the shares for Rs Rs 44.97 crore, Kuwait Investment Authority was allotted 2.8% of the shares for Rs Rs 39.98 crore, and Goldman Sachs got 2.16% of the stocks for an investment of Rs 29.98 crore. Government of Singapore was the largest investors among foreign institutions buying 16.39% of the anchor investor portion for Rs 235 crore. Four domestic mutual funds which include HDFC and Nippon were allocated 32.61 crore equity shares from anchor investor portion.
Subscription: IRFC IPO ( x times)
| Day / X times | QIB | NII | Retail | EMP | Total |
| Day 3 | 3.78 | 2.67 | 3.66 | 43.76 | 3.49 |
| Day 2 | 0.00 | 0.24 | 2.33 | 27.41 | 1.22 |
| Day 1 | 0.00 | 0.24 | 2.33 | 27.41 | 1.22 |
| Tot Applications | ~ 2551208 | ||||
| Appl wise Retail | 2.35 x |
Consolidated Brokerage Views on IRFC IPO
Angel Broking :”Subscribe: At the higher end of the price band the stock would be trading at P/BV of 1.0x fully diluted post issue book value of `26.6 per share. We expect the company to post strong growth driven by capex by Indian railways along with stable margins due to cost plus model. Given the growth prospects, we recommend a SUBSCRIBE rating on the issue.”
Capital Market : ” Score 53/100 ; The annualized EPS on post-issue equity works out to R 2.9 (annualized) for H1FY2021. At the price band of R 25 to R 29, P/E is 8.7 to 9.0 times of H1FY2021 EPS. Post-issue, the book value (BV) will be R 26.6 at the upper price band, while the adjusted BV (ABV) also stands at R 26.6 with nil non-performing assets. Post issue, the government shareholding in the company is reducing to 86.4%. The government is likely to continue to disinvest in tranches in future to raise funds for itself, keeping the scrip under constant pressure.”
Choice Broking: “Valuation at P/BV of 1x looks attractive for long term conservative investors, considering strong profitability growth (CAGR of 26.3% during FY18-FY20), double digit RoE at (annualized 12.2% in FY21) and low risk profile of business with zero GNPA. Considering all these parameters, we assign ‘Subscribe’ rating to the issue.”
GEPL Capital: “Subscribe’ to the issue for the long-term on the back of the relatively low-risk business model, strategic role in financing growth of Indian Railways and long term prospects considering electrification and network expansion. The offer is valued at a one time FY20 price to book value.”
LKP Finance: “Subscribe to the issue: Attractive valuation with healthy return ratios make us optimistic on the long term prospects for IRFC, with the potential for healthy listing gains.”
Phillip Capital: “. IRFC benefits from various exemptions related to tax, single-party exposure, asset classification, and provisioning
norms — which directly add to its earnings. Its strong balance sheet size of Rs 2.7tn, With nil GNPA, low overheads, and IR’s huge capex needs bode well for its growth prospects. Its earnings CAGR in FY18-20 was 34% aided by 31% CAGR in AUMs. . Recommend — SUBSCRIBE.”
Religare : “Given the promising long term growth prospects and low risk business model, we have a positive view on the company for long term. On the valuation front, IRFC is valued at 1x Sep-20 BVPS. Investors having long term view can invest in the company.”
SMC: “Score 3/5 ; IRFC is the public sector company that finances for Indian Railways projects. It has shown strong revenue and margin growth. However, its operational efficiency would completely dependent on its ability to maintain and get diverse sources of funds and at a low cost. Investors may consider investment for long term rewards as this company is laying its future on track and it is expected that the company would see good growth going forward.”
SP Tulsiyan Website: “Healthy fundamentals, attractive valuation and a play on Indian Railways make this IPO an ‘apply’ for moderate yet consistent gains.”
MORE WILL BE ADDED AS THEY BECOME AVAILABLE
Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above infoimration is collated from various online sources and is for educational purpose only. Please visit indidivual brokearge sites to read the actual reports. Please donot make ypur investkent decisions based on this info as it is not completre amd exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.