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IRFC fixes price band at Rs 25-Rs 26 per equity share for Rs 4,600 crore IPO

14 Jan 2021 Evaluate

Indian Railway Finance Corporation (IRFC), a public sector undertaking under the railways ministry, has fixed price band at Rs 25-Rs 26 per equity share for its Rs 4,600-crore initial public offering (IPO). The offer will comprise up to 178.2 crore shares of face value of Rs 10 each. The IPO includes a fresh issue of up to 118.8 crore shares (fresh issue) and an offer for sale of up to 59.4 crore equity shares by the President of India, acting through the Ministry of Railways.

Thus, the government is expected to mobilise Rs 1,544 crore at the upper price band. The government has set a target of raising Rs 2.1 lakh crore through divestment in the current financial year. This includes Rs 1.20 lakh crore through CPSE stake sale, and the remaining Rs 90,000 crore from financial institutions. In January 2020, IRFC had filed draft papers for its IPO.

IRFC, set up in 1986, is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. Its primary objective of IRFC is to meet the predominant portion of 'extra budgetary resources' requirement of the Indian Railways through market borrowings at the most competitive rates and terms.

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