Unlisted shares of Indian Railway Finance Corporation (IRFC), whose Rs 4,633 crore IPO will hit the market on Monday, were commanding a muted premium in the grey market on Thursday. This is even as brokerages have largely turned positive on the company’s prospects and are recommending a ‘subscribe’ rating on the issue.

About Company:

The primary business of IRFC is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles such as locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement, leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the Ministry of Railways, Government of India (MoR).

IRFC is registered with the Reserve Bank of India as an NBFC and is classified under the category of an ‘Infrastructure Finance Company’ of the Reserve Bank of India Act.

About the IPO

The three-day public issue will open on 18th Jan and closes on January 20. The company aims to raise Rs 4,633.4 crore at the higher end of the price band.

The initial public offering of up to 1,78,20,69,000 equity shares consists of a fresh issue of 1,18,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares by the Government of India.

The issue includes a reservation of equity shares worth Rs 50 lakh for subscription by eligible employees. The issue will constitute up to 13.64 percent of the post issue paid-up equity share capital of the company.

IPO Details

IPO Date: January 18, 2021, to January 20, 2021
Issue Type: Book Built Issue IPO
Issue Size: 1,782,069,000 Equity Shares of Rs.10 totaling up to Rs.4,633.38 Crore
Fresh Issue: 1,188,046,000 Equity Shares of Rs.10
Offer for Sale: 594,023,000 Equity Shares of Rs.10
Face Value: Rs.10 per equity share
IPO Price: Rs.25 to Rs.26 per equity share
Market Lot: 575 Shares
Min Order Quantity: 575
SharesListing At: BSE, NSE