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The public sector undertaking Indian Railway Finance Corporation Ltd. (IRFCL)is coming out with its Tranche II Tax Free bonds issue offer that is opening for subscription on 28.02.14. Details of the offer are as under:

IRFCL is offering bonds of face value of Rs. 1000 each and minimum application is to be made for 5 bonds and then in multiples of 1 bond thereafter. The issue that opens on 28.02.14 is set to close on or before 07.03.14. An investor can apply for the same in demat as well as in physical mode, however, the trading will take place in demat mode only. The base size of the offer is Rs. 1500 crore and the company has permission to retain oversubscription to the tune of Rs. 1416.88 crore, taking the overall size of the issue to Rs. 2916.88 crore. These bonds carries ratings as CRISILAAA/Stable' by CRISIL ; '[ICRA] AAA' by ICRA and ;'CARE AAA' by CARE indicating at the highest degree of safety regarding timely servicing of financial obligations. These will be listed on BSE and NSE post allotment.

These bonds are having coupon rate ranging from 8.19% to 8.88% depending on the category as well as on tenure of the bonds. Category I,II and II (all non-retail) are offered 8.19% for 10 yrs and 8.63% for 15 yrs while retail investors under Category IV are offered 8.44% for 10 yrs and 8.88% for 15 yrs.

This issue is lead managed by SBI Capital Markets Ltd, A K Capital Services Ltd, Axis Capital Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Co. Ltd. Karvy Computershare Pvt Ltd is the registrar to the issue and SBICAP Trustee Co. Ltd is the trustee to the bondholders.

Conclusion / Investment Strategy


Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on December 12, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.


The IRFC NCD Feb 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if IRFC NCD Feb 2014 worth investing. The IRFC NCD Feb 2014 Note sets the NCD expectations in systematic way which tells you if IRFC NCD Feb 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in IRFC NCD Feb 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.