IRFC IPO: State-owned Indian Railways Finance Corporation (IRFC) opened its first public offering on January 18, 2021, setting the price range at Rs 25-26 per share. The initial public offering (IPO) of Rs 4,633.4 crore became the first public offering for calendar year 2021. The issue’s price range, of Rs 25 to Rs 26 per share, has a face value of 10 rupees each. The three-day public offering will close on January 20, 2021. The initial public offering of a maximum of 1,78,20,69,000 equity shares includes a new issue of 1,18,80,46,000 shares shareholding and an offer to sell 59.40.23,000 government shares.
Offers for issue may be made for a minimum of 575 Equity Shares and in multiples thereafter. It is proposed that the shares be listed on BSE and NSE. IRFC’s IPO date has not yet been announced.
The Indian Railways Finance Company was incorporated in 1986 and is a public sector enterprise, 100% owned by the central government. IRFC is primarily engaged in financing the acquisition of rolling stock assets, leasing of railway infrastructure assets and loans to entities under the Ministry of Railways. As the financing arm of Indian Railways, IRFC is responsible for raising funds in the domestic or foreign market for the Ministry of Railways, needed to procure rolling stock assets such as rail cars, trucks, electric multiple units, locomotives, coaches, as well as its improvement, expansion, as well as asset management.
The main objective of the IRFC is to meet the predominant part of the extra-budgetary resource requirements of the Indian railways by borrowing in the market at the most competitive rates and terms.