Indian Railway Finance Corporation's initial public offer (IPO) closes for subscription at 5.00 pm today i.e. January 20. The IPO has been open for 3 days, since January 18. The shares are likely to be listed on the bourses on January 29, 2021.
The IPO has received good response from the investing community. The public offer was subscribed 2.44 times as of 2.30 pm on the final day of bidding, viz. January 20. Investors placed bids for 309.48 crore equity shares, as against the offer size of over 1.24 crore equity shares, the subscription data available on the exchanges showed. The retail investors' portion was subscribed 3.14 times, the portion set aside for non-institutional investors was subscribed 93 per cent and qualified institutional buyers segment attracted bids worth 2.34 times.
The Rs 4,633 crore public issue comprises a fresh issue of Rs 3,088.9 crore and an offer for sale of Rs 1,544 crore by the Government of India through Ministry of Railways. The shares are being offered in the price band of Rs 25-26 per share. Ahead of the IPO, the company raised Rs 1,390 crore through anchor book last week, at a higher end of the price band.
Indian Railway Finance Corporation will use net proceeds from the share sale 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 IPO.