Indian Railway Finance Corporation Limited (IRFC), the company which raises funds for Indian Railways via market borrowings has set a price band of Rs 25-26 for its initial public offering (IPO).
The IPO of size Rs 4633 crore (at the higher of the price band) will open on January 18,2021 and close on Janury 20,2021.
The IPO is a combination of a fresh issue of equity shares and an offer-for -sale by the Government of India.
Up to 1,782,069,000 Equity Shares of face value of Rs. 10 each is on offer.Of this,the IPO consists of a fresh issue of up to 1,188,046,000 Equity Shares and an offer for sale of up to 594,023,000 Equity Shares by the President of India, acting through the Ministry of Railways the selling shareholder.
The issue includes a reservation aggregating to Rs. 5.00 million for subscription by IRFC’s eligible employees.
The issue will constitute up to 13.64 per cent of the post issue paid-up equity share capital of the company.
The net proceeds from the fresh Issue are proposed to be utilised for (i) augmenting the equity capital base of the Company to meet their future capital requirements arising out of growth in their business; and for (ii) general corporate purposes.
The shares will be listed on the BSE and the NSE. DAM Capital Advisors Limited (formerly known as IDFC Securities Limited), HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Issue.
