IPO season’s strong start: IRFC IPO gets excellent response, 3.42 times on last day
The IPO of the Indian Railway Finance Corporation (IRFC) received a resounding response. It filled 3.42 times on Wednesday, the last day. The IPO of Indigo Paints also opened from today. On the first day it filled 1.9 times. Apart from this, the IPO of Home First Finance Company India will also be launched on January 21.
The IPO of IRFC received good response from retail investors. The reserve share for retail was 3.6 times and the workforce was 43.75 times. Similarly, the share of non-institutional investors was 2.6 times and that of qualified institutional buyers was 3.8 times.
The company paid Rs 4,633 crore. The initial public offering to raise was opened from 18 January. The price band for this was fixed at Rs 25-26. IRFC is a government company. Indian Railway Catering Tourism Corporation, a railway company, has already launched an IPO. Rail Development Corporation’s IPO is also coming soon.
Last week itself, IRFC raised about Rs 1,398 crore from anchor investors. For this, the company issued 33 crore equity shares to a total of 31 anchor investors at the rate of Rs 26 per share.
These anchor investors include HDFC Trustee Company Limited, Nippon Life India Trustee Limited, Government of Singapore, Kuwait Investment Authority Fund, Kotak Mahindra (International) Limited, Goldman Sachs (Singapore) PTE and Tata AIG General Insurance Company Limited.
The government company issued about 178 crore shares in the IPO for Rs 4,633 crore. Of this, 118 crore shares were fresh issue, while 59.4 crore shares were held for offer for sale (OFS). IRFC has issued about 13.64% of its entire paid-up capital through this IPO. Post IPO, the government’s stake in the company will come down to 86.4%. In this IPO, 5 million shares were reserved for IRFC employees. The funds raised from the IPO will be used to meet future capital requirements and general corporate needs for business growth.
A total of 16 companies launched IPOs in 2020, under which 31 thousand crore rupees were raised. Earlier in 2019, 17 companies raised a total of Rs 17,500 crore through IPO.
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