IRFC IPO 2021: Before the IPO, the Indian Railway Finance Corporation (IRFC) raised Rs 1389 crore from 31 anchor investors. IRFC has informed the stock market that on Friday, January 15, it has allotted 53.45 crore equity shares to Anchor Investors at a price of Rs 26 per share. 178 crore shares have been kept for subscription. IRFC’s IPO is the first IPO of 2021 this year and plans to raise Rs 4633 crore through fresh issue and offer for sale (OFS). Its IPO will open for subscription on 18 January. This will be the first IPO of 2021 this year.
Government of Singapore allotted 16.39 percent shares
The anchor investors of IRFS include Goldman Sachs, BNP Paribas, Kuwait Investment Authority and Monitoring Authority. All these have been allotted 53.45 crore shares, out of which about 4.15 percent shares have been allocated to the Monitoring Authority of Singapore for Rs 57.62 crore. 3.24 per cent shares were allocated to BNP Paribas for Rs 44.97 crores and 2.16 per cent shares were allocated to Goldman Sachs for Rs 29.98 crores. As the largest investor among foreign investors, the Government of Singapore was allotted 16.39 per cent shares for Rs 235 crore.
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32.61 crore equity shares to four domestic mutual funds
Talking about the domestic anchor investors for the IPO of IRFC, HDFC Equity Fund got 19.32 per cent of the shares offered to anchor investors for Rs 268 crore. HDFC’s Housing Opportunities Fund and Dividend Yield Fund were also among the anchor investors. Nippon India Tax Saver (ELSS) fund bought 8.99 percent shares for Rs 124.99 crore. 32.61 crore equity shares from Anchor Investors’ share were allotted to four domestic mutual funds.
IPO will open on January 18
The IPO of IRFC will open for subscription on Monday 18 January and will remain open for subscription to investors till 20 January. Under this offer, a fresh issue of Rs 3088 crore and OFS issue of Rs 1544 crore will be done. Investors will be able to apply for PSU NBFC IRFC in a lot of 575 shares in the price band of Rs 25-26. Thus, for a lot, investors have to invest Rs 14950. In the IPO of IRFC, 50 per cent of the issue is reserved for qualified institutional buyers (QIB). While 15 per cent for non-institutional buyers. 35 per cent is reserved for retail investors. IRFC is a dedicated financial arm of Indian Railways and has an AUM of Rs 2.78 lakh crore.