The first IPO of this year: Indian Railway Finance Corporation (IRFC) worth about Rs 4,600 crore. It opened for subscription today and will close on January 20. The aim behind this IPO is to augment the company's equity capital base to meet future growth requirements and general corporate purposes.
IRFC, set up in 1986, is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. It is a public-sector enterprise which is completely owned by the Government of India. This will be the first IPO by a railway non-banking financial company (NBFC).The company's principal business is to borrow funds from the financial markets to finance acquisition/ creation of assets which are then leased out to the Indian Railways.
The shares will be issued at a price band of Rs 25-26 per share with the face value of Rs 10 each. A single lot will comprise 575 shares worth Rs 14,950,whereas a retail-individual investor can apply for up to 13 lots which will hold 7,475 shares worth Rs 1,94,350.IRFC share allotment is likely to be finalised on January 25, according to brokerages,while the listing is expected to happen on January 29.
Should you subscribe? Likhita Chepa, Senior Research Analyst at CapitalVia Global Research Limited and Nirali Shah, Senior Research Analyst, Samco Securities answers this in the podcast. Tune in to know more