The Indian Railway Finance Corporation filed its IPO on January 18, 2021 gaining a countrywide attention. With the second day of IPO, the company received subscriptions for 1.23 times so far.
IRFC IPO is largely supported by the huge number of retailers and investors.
The bids received have exceeded against the offer size. The company received bids for worth Rs 152.6 crore shares against the proposed offer of over Rs 124.75 crore.
This massive IPO already had a house full on day 1 with 65% subscription. The Indian Railway Finance Corporation has already raised Rs 1,390 crore through its public issue and is still going forward to its benchmark of Rs 4,633 crores.
The Indian Railway Finance Corporation is a borrowing arm of the Indian Railways and it financed the Indian Railways by Rs 71,392 crores in FY20. The MoR is expected to borrow Rs 1,15,567 crore in the FY21.
IRFC has financed the Indian Railways through various sources being a borrowing arm as well. IRFC has financed a total 48.2% of capital expenditure to the Indian Railways in the previous year.
The IPO includes worth Rs 1,18,80,46,000 equity shares along with an offer for sale of worth 59,40,23,000 equity shares by the President of India.
The price band has been fixed at Rs 25-26 per share and the issue will remain open till January 20, 2021.
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