The initial public offer (IPO) of Indian Railway Finance Corporation (IRFC) was subscribed 0.65 times of 65 per cent on the first day of subscription on Monday. The IPO received bids for 80,89,30,700 shares against 1,24,75,05,993 shares on offer, as per data available with the NSE.
The category reserved for non-institutional investors was subscribed 9 per cent and retail individual investors 1.25 times.
IRFC had on Friday raised a little over Rs 1,398 crore from anchor investors.
This is the first-ever IPO by a non-banking financial company (NBFC) in the public sector. The IPO will close on January 21. Price band for the IRFC IPO has been fixed at Rs 25 to Rs 26 per share.
The share sale that is offering up to 178.2 crore shares of face value of Rs 10 each, comprises a fresh issue of up to 118.8 crore shares and an offer for sale of up to 59.4 crore equity shares by the government.
Post the IPO, the shareholding of government will come down to 86.4%, from 100% earlier. The issue includes a reservation of Rs 50 lakh worth of shares for eligible employees. Shares of IRFC are proposed to be listed on BSE and NSE.
The company will utilise the net proceeds 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.
The bids for the issue can be made for a minimum of 575 equity shares and in multiples thereafter. Up to 50% of the net issue is reserved for Qualified Institutional Buyers (QIB).
The company has reserved not more than 35% of the issue for the retail investors and the remaining 15% for Non-Institutional category. The issue includes a reservation of equity shares worth Rs 50 lakh for subscription by eligible employees.
AM Capital Advisors Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd and SBI Capital Markets Ltd are the book running lead managers to the offer. KFin Technologies Private Ltd will be the registrar to the issue.