Indian Railway Finance Corporation (IRFC) will launch its maiden initial public offering on 18th January to raise about Rs 4,633.4 crore. The price range for IRFC’s initial public offer is fixed at Rs 25-26 per share. The IPO will close on 20th January.
The initial public offering of 178.20 crore equity shares will include a fresh issue of about 118 crore shares and an offer for sale of 59 crore shares by the Government of India. IRFC will raise about Rs 3,200 crore through a fresh issue and the government will raise about Rs 1,400 crore. After IPO, the government holding in IRFC will decline to 86%.
Participants can bid for a minimum of 575 equity shares and then in multiples of 575 shares. IRFC has reserved 50% of the issue for the Qualified Institutional Buyers, 35% for the retail investor and 15% for the Non-Institutional category.
IRFC will use the proceeds from the fresh issue to raise the company’s equity capital base and for the growth of the business.
Indian Railway Finance Corporation Limited or IRFC is an ‘Infrastructure Finance Company’ owned by Indian Railways. IRFC helps in the creation of an infrastructure in the Railway Sector. Its main business is the leasing of Rolling Stocks such as Locomotives, Passenger Coaches and Freight Wagons to Indian Railways. The Company also raises financial resources from the bank and financial institutes to fund the acquisition of these assets. IRFC’s turnover is Rs.13838.46 Crore and net worth is Rs.30962.43 Crore as of March 2020
This year, more than 10 companies may launch their initial public offerings including Indigo Paints, Kalyan Jewellers, Brookfield India Real Estate Trust, Suryoday Small Finance Bank, ESAF Small Finance Bank, Railtel Corporation Of India and Barbeque Nation Hospitality.