IRFC’s Rs 4,600-cr IPO to hit markets on Jan 18; price band set at Rs 25-26

• The issue will close on January 20 and will comprise 1,782,069,000 shares

• The quota limit for qualified institutional bidders (QIBs) will be 50 percent, and for retail investors and non-individual investors, the limit will be 35 percent and 15 percent

New Delhi: Indian Railway Finance Corporation's (IRFC) initial public offer (IPO) of about Rs 4,600 crore is set to hit the markets on January 18, said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Wednesday. IRFC IPO will be 2021's first IPO by a non-banking financial company in the public sector. Announcing the news on Twitter, Pandey said, "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."

IRFC IPO

The issue will close on January 20 and will comprise 1,782,069,000 shares. At the upper end of the price band, the size of the issue will be Rs 1,633.37 crore. The quota limit for qualified institutional bidders (QIBs) will be 50 percent, and for retail investors and non-individual investors, the limit will be 35 percent and 15 percent of the issue, respectively.

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The IPO will include a fresh issue of up to 1,188,046,000 shares, aggregating up to Rs 3,088.91 crore. It will also comprise an offer for sale (OFS) of 594,023,000 shares by the government, amounting to Rs 1,544.44 crore.

IRFC to use IPO proceeds for augmenting equity capital base, OFS proceeds will go to govt

IRFC will use the net fresh issue proceeds for augmenting equity capital base to meet future capital requirements arising out of growth in the business; and general corporate purposes, said the company. It also said that the proceeds of the OFS will be received by the Central government and not by the PSU. Bids can be made for a minimum of 575 equity shares and in multiples of 575 shares thereafter.

IRFC is involved in financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles such as locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement, leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the Ministry of Railways, Government of India (MoR).

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