IRFC's Rs4,634-cr IPO to open on 18 January; price band set at Rs25-26
21 January 2021
The Rs4,634 crore initial public offer (IPO) of Indian Railway Finance Corporation (IRFC) will open on 18 January and remain open till 20 January. The company has set the price band of the issue in the range of Rs25-26 per share of face value Rs10 each.
This will be the first IPO to hit the market in 2021. It is also the first by a non-banking financial company in the public sector.
The IPO comprises a fresh issue of 59.43 crore equity shares and offer-for-sale of up to 118.80 crore shares.
An investor can apply for a minimum of 575 equity shares and in multiples thereafter.
IRFC has reserved 50 er cent of the issue for qualified institutional buyers and 15 per cent for non-institutional buyers. The remaining 35 per cent goes to retail investors.
The shares are expected to be listed on the bourses on 29 January. The equity shares will be listed on both the exchanges — BSE and NSE.
DAM Capital Advisors, HSBC Securities and Capital Markets, ICICI Securities and SBI Capital Markets are the lead managers to the IPO.
Indian Railway Finance Corporation is primarily engaged in financing the acquisition of rolling stock and projects of Indian Railways and lending to other entities under the ministry of railways.
IRFC is registered with the Reserve Bank of India as an NBFC and is classified under the category of an ‘Infrastructure Finance Company’ under the Reserve Bank of India Act.
IRFC will not receive any proceeds from the offer for sale and the entire amount will go to Government of India, the promoter of the company.