The Rs 4,634-crore Indian Railway Finance Corporation (IRFC) initial public offer (IPO) is scheduled to open on January 18, and close on January 20, 2021. Price band of the issue is Rs 25-26 per share. The shares of IRFC are proposed to be listed on BSE and NSE.
As per the red herring prospectus (RHP), the issue will comprise up to 178.20 crore shares with fresh issue of up to 118.80 crore shares and offer for sale of up to 59.40 crore shares by the government. IRFC received Sebi's approval for its public issue on 25 February 2020. The issue will constitute up to 13.64% of the post issue paid-up equity share capital of the company.
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.
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.
DAM 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.
Set up in 1986, IRFC, which is the dedicated financing arm of the Indian Railways, will become the first NBFC from the PSU sector that is going public.
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