Latest IPO in market: India Railway Finance Corporation

Indian Railway Finance Corporation has launched its Initial Public Offering worth Rs 4,633 Crores. IRFC is a dedicated market borrowing subsidiary of Indian Railways. The subscription has been opened on January 18.

There are a total of 1,78,20,69,000 equity shares in the IPO which includes 1,18,80,46,000 fresh issue shares and an offer for sale of 59,40,23,000 shares by the Honorable President of India. For the eligible employees, there is a reservation of equity shares worth Rs 50 lakhs.

The issue was opened on January 18 and will remain open till January 20. The price band for the same has been fixed at Rs 25-26 per share.

The issue has received a thumbs up from many broking houses, the reason being the low risk business model, lower credit risk, healthy return rations and the highest ever allocation of capital expenditure for Indian Railways in the Union Budget 2020. The Union Budget of 2020 proposed a capital expenditure of Rs 1,60,200 crore for the Railways Ministry, highest-ever allocation for the Indian Railways. Of this 23 percent was towards rolling assets.

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