On January 18th, the Indian Railway Finance Corporation will introduce an IPO price band set at Rs. 25-26;
The Indian Railway Finance Corporation (IRFC) is all set to enter the market with an Rs. 4,600 Cr which will be the first IPO of 2021. The IPO opens on 18th January and closes on 20th January. Hence, the issue is up to 178.20 Cr shares according to the red herring prospectus (RHP) containing a fresh issue of 59.43 Cr equity shares and an offer to sell (OFS) up to 118.8 Cr shares. The price range of the issue is between Rs. 25-26 per share with a nominal value of Rs. 10 each.
For a minimum of 575 equity shares and multiples afterwards up to 50% of IRFC. Net issues reserved for Qualified Institutional Buyers (QIBs). While retail investors have reserved no more than 35% of the issue for the firm and 15% of the IRFC IPO. However, be reserved for the Non-Institutional groups.
IRFC obtained SEBI approval for its public issuance:
To meet the potential capital needs resulting from growth in revenue and general corporate purposes. The company will use the net proceeds to expand the company’s equity capital base. Moreover, the business will not receive any proceeds from the bid for sale and the government will receive the same. IRFC, under the administrative control of the Ministry of Railways, Govt., is a Schedule ‘A’ Public Sector Company. India and non-deposit taking with the Reserve Bank of India Non-Banking Financial Company (NBFC) and Infrastructure Finance Company (NBFC- IFC) (RBI).
In conclusion, On 25th February 2020, IRFC obtained SEBI approval for its public issuance. Indian Railways’ dedicated market borrowing arm will use the net proceeds. To expand the equity capital base of the corporation to meet potential capital needs resulting from growth in revenue and general corporate purposes. It is suggested that IRFC shares listed on BSE and NSE. The book running lead managers for the bid are DAM Capital Advisors Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, and SBI Capital Markets Ltd. Although the registrar for the problem will be KFin Technologies Private Ltd.