Indian Railway Finance Corporation IPO Opens Today

Indian Railway Finance Corporation's initial public offer (IPO) opens for subscription today i.e. January 18. The IPO will be open until January 20 and the shares will be offered in the price band of Rs 25-26 per share. The shares will be listed on the bourses on January 29, 2021.

The IPO consists of sale of up to 178.20 crore shares, including a fresh issue of up to 118.80 crore and offer-for-sale of up to 59.40 crore shares by the government. IRFC will raise Rs 4,633.38 crore at the higher range of the price band of Rs 25-26 per share.

Investors can bid for a minimum one lot of 575 shares and in multiples up to 13 lots, amounting to 7,475 shares. The net proceeds from the share sale will be used by the company to meet its future capital requirements and for general corporate purposes.

DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets are the book running lead managers to the public issue.

Incorporated in 1986, IRFC is the market borrowing arm of Indian Railways that finances purchase of rolling stock assets, leasing of railway infrastructure assets and lending to other entities under the Ministry of Railways.

Indian Railway Finance Corporation IPO is the first in calendar year 2021.