InvestorQ : Can you tell me about the proposed IPO by Indian Railway Finance Corporation?
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Can you tell me about the proposed IPO by Indian Railway Finance Corporation?

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4 months ago
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This IPO of IRFC was planned towards the end of December but to avoid too much of bunching it was put off to January. Now the final details and the pricing as well as the dates of the IPO have been announced. This is part of the government drive to improve its disinvestment revenues to the extent possible before March this year.

The Indian Railway Finance Corporation or IRFC has set a price band of Rs.25-Rs.26 for its proposed Rs.4600 crore IPO. The IPO will be a mix of a fresh offer of shares and a divestment of shares by the government. The government owns a stake in IRFC through the Indian Railways, which is affiliated to the Ministry of Railways.

The total size of issue planned is to the tune of 178.2 crore shares in total. Out of this total issue size, 118.8 crore shares will represent a fresh issue of shares via new issue while the balance 59.4 crore shares will be an offer for sale or OFS by the government of India. The government will likely raise a sum of Rs.1544 crore through the OFS at the upper price band.

The anchor book for anchor investors will be open on 15 January and close on the same day. The actual IPO will be open between 18 January Monday and 20 January Wednesday. Bids for the IPO can be made in multiples of 575 shares and up to Rs.2 lakhs for retail quota. The fresh IPO portion will enhance capital for future asset book expansion via better CRAR.

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