Report
EUR 92.91
For Business Accounts Only
IRFC is the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas capital markets. Its primary business is financing the acquisition of rolling stock assets and project assets of the Indian railways and lending to other entities under the Ministry of Railways.
IRFC’s AUM has grown by 25-30% over FY18-FY19, while disbursements have been growing at 34-43%. Although earnings growth has lagged AUM growth in FY19, after posting a strong FY18.
Although, its net interest margin has been under pressure due to the rising cost of funds and lower margin set by the Ministry of Railways.
Furthermore, a higher proportion of financing of project assets in the future will probably continue to pressurise margins.
Due to its government linked financing, the company has no non-performing assets and high capital adequacy.
Indian Railway Finance Pre-IPO - Low risk, low margin business
Indian Railway Finance Corporation (IRFC) aims to raise around US$400m via selling new and existing shares in its Indian IPO.IRFC is the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas capital markets. Its primary business is financing the acquisition of rolling stock assets and project assets of the Indian railways and lending to other entities under the Ministry of Railways.
IRFC’s AUM has grown by 25-30% over FY18-FY19, while disbursements have been growing at 34-43%. Although earnings growth has lagged AUM growth in FY19, after posting a strong FY18.
Although, its net interest margin has been under pressure due to the rising cost of funds and lower margin set by the Ministry of Railways.
Furthermore, a higher proportion of financing of project assets in the future will probably continue to pressurise margins.
Due to its government linked financing, the company has no non-performing assets and high capital adequacy.
Underlying
INDIAN RAILWAY FINANCE CORP
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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