The Rs 4,633 crore initial public offering (IPO) of the Indian Railway Finance Corporation (IRFC) will close for subscription on Wednesday, January 20. The share sale of the first IPO of the year 2021 started on Monday, January 18.The IPO comprises up to 178.20 crore shares, out of which the fresh issue was of up to 118.80 crore shares and an offer-for-sale of up to 59.40 crore shares.On the second day of the subscription (Tuesday), the IPO of IRFC was subscribed 1.22 times. According to the data available with the National Stock Exchange (NSE), the offer received bids for 1,52,64,04,775 shares against 1,24,75,05,993 shares on offer.
The ctegory reserved for theretail individual investors (RIIs) was subscribed 2.33 times. On the other hand, inthe category reserved fornon-institutional investors, the subscription was marked at 24 percent.On the first day of the subscription (Monday), the IPO was subscribed by 65 percent. According to the date by the NSE, as against 1,24,75,05,993 shares on offer, the final bids were received for80,89,30,700 shares.
The IRFC has already fixed theprice range for theshares. Each share has been priced at Rs 25-26, whilethe face value isRs 10 each.It is expected to fetch Rs 4,633 crore.The main purpose of the IPO is to augment the company's equity capital base to meet future growth requirements and general corporate purposes.
Incorporated in the year 1986, IRFC -the dedicated market borrowing arm of the Indian Railways - is a public-sector enterprise which is completely owned by the Government of India.As IRFC is going public, it has become the first non-banking financial company (NBFC) in the public sector to do so.Registered with the Reserve Bank of India (RBI) as an NBFC, the company is classified under the category of an 'Infrastructure Finance Company' of the Reserve Bank of India Act.
In the month of April 2017, the Union Cabinet had approved the listing of five railway companies. Out of the listed companies were IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and Indian Railway Catering and Tourism Corp.