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IRFC IPO Opens on January 18: Here is All You Need to Know

The Indian Railway Finance Corporation (IRFC)’s initial public offering (IPO) will open on January 18 and close on January 20, making it the first IPO of the year 2021. The IPO will raise Rs 4,634 crore for IRFC.

Tuhin Kanta Pandey, secretary at Department of Investment and Public Asset Management (DIPAM), gave this information via a tweet saying “IRFC coming up for listing with a Rs 4600 cr+ issue in a price band of Rs 25-26 per share. Anchor book on Jan 15 and the Main book from Jan 18-20”.

IRFC, the dedicated market borrowing arm of the Indian Railways was incorporated in 1986 and is a public-sector enterprise which is completely owned by the Government of India. IRFC is the first non-banking financial company (NBFC) in the public sector which is going public. It is registered with the Reserve Bank of India (RBI) as an NBFC and is classified under the category of an ‘Infrastructure Finance Company’ of the Reserve Bank of India Act.

The main objective behind this IPO is to augment the company’s equity capital base to meet future growth requirements and general corporate purposes.

IRFC IPO lot sizeA 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.

Price bandThe shares will be issued under the price band of Rs 25-26 per share with the face value of Rs 10 each.

How to applyOne can apply for the IPO online using UPI or via a bank account. For applying offline you can take the help of stock brokers.

IRFC received the approval for its public issue on 25 February 2020 by the Securities and Exchange Board of India (SEBI). In April 2017, the Union Cabinet approved listing of five railway companies out of which four have already been listed namely IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and Indian Railway Catering and Tourism Corp (IRCTC).

Source: News18