Indian Railway Finance Corporation (IRFC) has filed papers with markets regulator Sebi to float an initial public offering of over 178 crore shares. The public offering will consist of a fresh issue of 118 crore equity shares and an offer for sale of 59.4 crore equity shares by the Government of India, according to an addendum to the draft red herring prospectus (DRHP) filed with Sebi. IRPF has not specified the IPO size (in terms of value) and the IPO price, as of now.
IRFC had, in January, filed draft papers with Sebi for a fresh issue of 93.8 crore equity shares and an offer for sale of 46.9 crore equity shares by the central government. It has now, through the additional papers filed with the market regulator, increased the funding issue size.
Indian Railway Finance Corporation will utilise the net proceeds of the IPO to augment its equity capital base to meet future capital requirements arising out of business growth and general corporate purposes.
DAM Capital Market Advisors (formerly known as IDFC Securities), HSBC Securities and Capital Markets, ICICI Securities and SBI Capital Markets are the book running lead managers to the public issue.
IRFC is a finance arm of the Indian Railways. It is wholly owned by the Indian government, through the Ministry of Railways. It mobilises funds from domestic and overseas capital markets to finance the Railways' expansion activities across the country.
Four out of the five railway companies in the country are already listed on the bourses. The listed entities are IRCON International Ltd, RITES, Rail Vikas Nigam and Indian Railway Catering and Tourism Corporation.