Indian Railway Finance Corporation or IRFC is all geared up to go live with its IPO next week. The company's maiden offer for susbscription will open on January 18 for 3 days.
The company aims to raise over Rs4,600cr from the issue which will close on January 20. It is the first IPO to go live this year.
It is a dedicated market borrowing subsidiary of the Indian Railways.
The price band has been set at Rs25-26 per equity share, and each lot that can be bid upon will consist of 575 shares each, which is also the minimum order quantity.
The total issue size stands at 1,78,20,69,000 equity shares aggregating to Rs4,633.4cr. Out of this 1,18,80,46,000 equity shares with a face value of Rs10 each are part of the Fresh Issue, while the rest 59,40,23,000 shares will make up the chunk for Offer for Sale (OFS).
Post this issue, the company's promoter's holding in the company will decrease from 100% to 86%. The issue constitutes up to 13.64% of the post issue paid-up capital of IRFC.
It also includes a reservation of shares worth Rs50 lakh for subscription by eligible employees.
IRFC is regsitered with RBI as an NBFC, and is classified under the 'Infrastructure Finance Company' category under the RBI Act. The proceeds from OFS will not be received by the company but will rather go to the Government of India.
IRFC intends to use proceeds from the IPO to augment its equity capital base to meet business future growth requirements. It also intends to put the proceeds towards meeting general corporate purpose expenses.
ICICI Securities, SBI Capital Markets, HSBC Securities and Capital Markets (India) and DAM Capital Advisors will act as the BRLMs to the issue.
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