There are at least 15 IPOs scheduled
for 2021, of which six are likely to take place in January. On January 18, the
State-owned Indian Railway Finance Corporation (IRFC) has planned to
initiate its first public subscription offer and has set the price range
at approximately Rs 25-26 per share.
The three-day public issue will end
on January 20. At the higher end of the price band, the company intends to
collect Rs 4,633.4 crore and at the lower end, RS 4,455 crore. A new issue of
1,18,80,46,000 equity shares and an offer from the Government of India to sell
59,40,23,000 equity shares constitute the initial public offer of up to
1,78,20,69,000 equity shares.
IRFC shares were seen trading in the
grey market with a muted premium of Rs 1.60 per piece over the issue price.
This is the first public issue for a railway non-banking finance company
The issue involves a reservation for
subscription by qualifying employees of equity shares worth Rs 50 lakh. The
issue would represent up to 13.64% of the company''s paid-up equity share
capital after issue. Bids can be initiated for a minimum of 575 shares of equity
and for multiples of 575 shares.
IRFC is registered as an NBFC with
the Reserve Bank of India and is listed under the group of Reserve Bank of
India Act as ''Infrastructure Finance Company''.
IRFC defines itself as the Indian
Railway’s dedicated market borrowing arm, registered as NBFC with the RBI. Its
core business is funding the purchase of Indian Railway’s rolling stock assets
and project assets and lending to other entities under MoR.
No proceeds from the sale will be
received by the corporation and the Government of India will receive the same. Up
to 50% of the net bid will be confined for qualified institutional buyers
(QIBs), 35% for retail investors and 15% for non-institutional buyers.