Rail IPOs to help meet Rs 1-trillion revised disinvestment target

To meet the revised disinvestment target of Rs 1 trillion in 2017-18, the Narendra Modi government is in the process of carrying out the planned initial public offering (IPO) of two rail companies, IRFC and RITES, before March 31.

The RITES IPO could involve a 12 per cent stake of the Centre, while in the case of IRFC, 10 per cent could be offloaded.

This is to be followed immediately by a ‘piggy back’ sale in which the company will issue additional shares, which will take investors’ stake in the company to 15 per cent.

The Centre could also issue a further fund