Shares of Indian Railway Finance Corporation (IRFC) listed at a 4% discount from its issue price at Rs 24.90 on NSE today.
IRFC share made its debut at Rs 25 on BSE, declining 3.85% apiece.
The initial public offer (IPO) of the company that was open between January 18-20, 2021, at a price band of Rs 25-26 per share, was subscribed nearly 3.5 times. It received bids for 432 crore shares against the issue size of 124.75 crore. Ahead of the IPO, IRFC had raised about Rs 1,400 crore from anchor investors.
Set up in 1986, IRFC- a dedicated market borrowing arm of the Indian Railways, became the first NBFC from the PSU sector that went public today.
The IPO of the fifth railway's company to hit the stock market since 2017- comprised of an issue size of Rs 4,600 crore, out of which the fresh issue comprise Rs 3,100 crore and OFS Rs 1,500 crore. The issue constituted up to 13.64% of the post issue paid-up equity share capital of the company.
IRFC share allotment was finalised on January 25. Government's stakeholding reduced to 86% from 100% post the IPO. Most brokerages have given IRFC subscribe rating, especially for the long term.
IRFC received Sebi's approval for its public issue on 25 February 2020.
The company will utilise the net proceeds from the Rs 4,634-crore IPO towards augmenting the company's equity capital base to meet future capital requirements arising out of growth in business and general corporate purposes. The company will not receive any proceeds from the offer for sale and the same will be received by the Government of India.