Indian Railway Finance Corporation, the dedicated market borrowing arm of the Indian Railways, on January 15 raised Rs 1,390 crore from 31 anchor investors ahead of its IPO opening.
The Rs 4,633-crore maiden public issue of state-owned entity will open for bidding on January 18, with a price band of Rs 25-26 per share. The same will close for subscription on January 20.
"The company and selling shareholders, in consultation with merchant bankers, has finalised allocation of 53,45,63,007 equity shares to anchor investors, at an upper price band of Rs 26 per share," IRFC said in its circular published on the exchange.
The company garnered Rs 1,389.86 crore from anchor investors. HDFC Trustee, Government of Singapore, Invesco India, Monetary Authority of Singapore, SBI Pension Fund, Kuwait Investment Authority, Goldman Sachs, BNP Paribas and Tata AIG were amongst the marquee names on the anchor investors' list.
The initial public offering of 1,78,20,69,000 equity shares comprises a fresh issue of 1,18,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares by the President of India. The issue includes a reservation of Rs 50 lakh worth of shares for eligible employees.
Bids can be made for a minimum of 575 equity shares and in multiples of 575 equity shares thereafter.
The state-owned company will utilise net fresh issue funds for augmenting equity capital base to meet future capital requirements arising out of growth in the business; and general corporate purposes.
The primary business of IRFC is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles such as locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds.
DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets are the book-running lead managers to the issue.