Indian Railway Finance Corporation’s initial public offer (IPO), the first IPO in 2021, will open for subscription tomorrow i.e. January 18. The IPO will close on January 20. Indian Railway Finance Corporation (IRFC) has fixed the price band at Rs 25-26 per share and intends to raise Rs 4633.38 crore at the higher range of the price band. The shares are likely to be listed on the BSE Sensex and NSE Nifty on January 29, 2021.
The IPO will comprise sale of up to 178.20 crore shares, including a fresh issue of up to 118.80 crore and offer-for-sale of up to 59.40 crore shares by the government. Equity shares worth Rs 50 lakh will be reserved for eligible employees.
The issue will constitute up to 13.64 per cent of the post issue paid-up equity share capital of the company.
Investors will be eligible to bid for a minimum one lot of 575 shares and in multiples up to 13 lots, amounting to 7,475 shares.
The company will use the net proceeds from the fresh share issue to meet future capital requirements and for general corporate purposes.
The book running lead managers to the issue are DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets.
Incorporated in 1986, IRFC is the dedicated market borrowing arm of Indian Railways. It finances the acquisition of rolling stock assets, leasing of railway infrastructure assets and national projects and lending to other entities under the Ministry of Railways.
Four out of the five railway companies in the country are already listed on the bourses. The listed entities are IRCON International Ltd, RITES, Rail Vikas Nigam and Indian Railway Catering and Tourism Corporation.