The initial public offering (IPO) of Indian Railway Finance Corporation (IRFC) worth about Rs 4,600 crore will hit the market today on January 18. The Union Cabinet had in April 2017 approved the listing of five railway companies. Four of them -- IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd, and Indian Railway Catering and Tourism Corp -- have already been listed.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey had earlier tweeted, "IRFC coming up for listing with a Rs 4600 cr+ issue in a price band of Rs 25-26 per share. Anchor book on Jan 15 and the main book from Jan 18-20."
Here are the complete details about the Indian Railway Finance Corporation (IRFC) IPO:
Opening and closing date: IRFC will open on January 18 and would close on January 20.
Band Price: The company has a fixed price band for its public issue at Rs 25-26 per share.
Fund Raising: IRFC has a fixed price band at Rs 25-Rs 26 per equity share for its Rs 4,600-crore initial public offering (IPO).
Public Offering details: The issue is of up to 178.20 crore shares, comprising a fresh issue of up to 118.80 crore shares and an offer for sale of up to 59.40 crore shares by the government, according to the draft prospectus. This will be the first IPO by a railway non-banking financial company (NBFC). In January 2020, IRFC had filed draft papers for its IPO.
IRFC IPO Anchor investors: The anchor investors include HDFC Trustee Company Ltd, Nippon Life India Trustee Ltd, Government of Singapore, Monetary Authority of Singapore, Kuwait Investment Authority Fund, Kotak Mahindra (International) Ltd, Goldman Sachs (Singapore) PTE, Tata AIG General Insurance Co Ltd and Aditya Birla Sun Life Insurance Co Ltd.
About Indian Railway Finance Corporation (IRFC): The company's principal business is to borrow funds from the financial markets to finance acquisition/ creation of assets which are then leased out to the Indian Railways. IRFC, set up in 1986, is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. Its primary objective of IRFC is to meet the predominant portion of the 'extra-budgetary resources' requirement of the Indian Railways through market borrowings at the most competitive rates and terms.