Indian Railways Finance Corp. is looking to raise Rs 4,600 crore by selling shares in an initial public offering, at a time domestic equities are scaling new records.
The maiden offer will open on Jan. 18 and close on Jan. 20, and the price band has been set at Rs 25-26 apiece on a face value of Rs 10 each.
“The total divestment is going to be of 13.64%. While one-third of the proceeds will go to the government, two-thirds will come to the balance sheet of the company,” Amitabh Banerjee, chairman and managing director at Indian Railways' dedicated fundraising arm, told BloombergQuint in an interview.
The Ministry of Railways, Banerjee said, has a huge capex outlay programme, and while a part of it will be provided for by the gross budgetary support, IRFC will play a major part in financing the projects. “Last year we financed nearly 45% of the total capex requirement of the Indian Railways, and in the current financial it may go up to nearly 70%.”
The IPO for the anchor investors will open on Jan. 15.
Watch the full interview with the IRFC chairman here:
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