InvestorQ : What are the details of IRFC IPO that is coming out and would you advice to invest in the same? I am asking because IRCTC has given wonderful returns.
Rashi Mehra made post

What are the details of IRFC IPO that is coming out and would you advice to invest in the same? I am asking because IRCTC has given wonderful returns.

Answer
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sarah Leo answered.
6 months ago


Next in the IPO queue is IRFC, another group unit of the Indian Railways. After the success of the IRCTC IPO giving over 500% returns in four months, Indian Railways is looking to monetize more of its assets. Indian Railway Finance Corporation (IRFC) has got SEBI approval for its proposed IPO.

The IPO will entail a fresh issue of 93.8 crore shares an offer-for-sale (OFS) worth Rs.46.9 core shares. The net proceeds of the fresh issue component of the IPO will be utilized by the IRFC to augmenting its equity capital base and to meet future capital adequacy requirements.

IRFC basically specializes in financing the rolling stock and is an arm of the Indian Railways. The price of the issue and other valuation details will only be known later so we will have to wait for that.

However, you cannot compare this with IRCTC as that is a different business model altogether.