IRFC fixes price band for Rs4,600-cr IPO
Govt hopes to mobilise Rs1,544 cr
– The offer will comprise up to 178.2 crore shares of face value of Rs10 each
– The IPO includes a fresh issue of up to 118.8 crore shares (fresh issue) and an offer for sale of up to 59.4 crore equity shares by the President of India, acting through the Ministry of Railways
New Delhi, January 13
Indian Railway Finance Corporation (IRFC), a public sector undertaking under the Ministry of Railways, on Wednesday fixed price band at Rs 25-Rs 26 per equity share for its Rs 4,600-crore initial public offering (IPO).
The offer will comprise up to 178.2 crore shares of face value of Rs 10 each. The IPO includes a fresh issue of up to 118.8 crore shares (fresh issue) and an offer for sale of up to 59.4 crore equity shares by the President of India, acting through the Ministry of Railways.
Thus, the government is expected to mobilise Rs 1,544 crore at the upper price band.
The government has set a target of raising Rs 2.1 lakh crore through divestment in the current financial year. This includes Rs 1.20 lakh crore through CPSE stake sale, and the remaining Rs 90,000 crore from financial institutions.
“IRFC coming up for listing with a Rs 4,600 cr+ issue in a price band of Rs 25-26 per share. Anchor book on Jan 15 and the main book from January 18-20,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet on Wednesday.
According to the company’s statement, the issue includes a reservation aggregating to Rs 50 lakh for subscription by eligible employees and the issue less employee reservation portion is referred to as the net issue.
Bids can be made for a minimum of 575 shares and in multiples of 575 thereafter, it said. The issue is being made through the book building process wherein not more than 50 per cent of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, it added. The company may allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis in accordance with the Sebi regulation, the statement.
