After a long wait, the IPO of the government-run IRFC has opened for subscriptions in the market today. This IPO of IRFC is the first IPO of any NBFC in the country. The IPO of the railway-related company is seen as IRCTC. Here are the details about this issue before deciding whether to invest in or stay away from this IPO.
IPO of IRFC open today
Indian Railway Finance Corporation (IRFC) IPO has opened today, with a price band fixed at Rs 25-26 per share. For three days from today, investors will have the opportunity to put money into this IPO. For anchor investors, the IPO opened 3 days ago on January 15, which will close on January 20. The government plans to raise Rs 4,633.4 crore through this IPO.
Apply for at least 575 shares
This IPO of IRFC is the first IPO of any non-banking financial company (NBFC) in the country. IRFC is the first NBFC in the public sector to be public. In this IPO, investors will have to apply for at least 575 shares, i.e., the lot size is 575 shares. Any investor can apply for a maximum of 13 lots.
178 crore shares to be issued
1,78,20,69,000 (178 crore) equity shares to be issued in Indian Railway Finance Corporation (IRFC) IPO, in which Fresh shares are 1,18,80,46,000 (118 crore), while the offer for sale is 59,40,23,000 (59.4 crore) equity shares. IRFC will issue a total of 178 crore shares for this IPO. The company will issue 13.64% of its entire paid-up equity capital share for this IPO.
Invest in IRFC IPO or stay away?
“It is a government company and is connected to the railways, as well as AAA-rated,” says Anil Singhvi, managing editor of channel Zee Business. Therefore, there is no concern about the company’s balance sheet and finances. Strong revenue and profit are expected for the next several years. Look at it as the financier of Indian Railways, where the company pays the most money whenever the Indian Railways needs money. The company’s valuations are very good and anchor books are also strong,” he said.
According to Anil Singhvi, “There are some negative things in this company” its equity size is huge, has a market cap of Rs 34,000 crore, so it won’t move easily. After this IPO, the government’s share will be 86.6 percent, i.e., 11.4 percent more. Unless the government brings it up to 75 cents, the stock will not run. So, I recommend that you put money in this IPO for the long term, but I am not expecting a very big listing. People who invest in FDs can put money here. If you want a 12-15 percent return annually, these stocks are fine, i.e. these shares will give you double the return from FD. It will continue to earn you stable money. It will not increase too much or decrease too much.”
In this issue, 50 lakh shares have been kept reserve for IRFC employees. The company will use IPO-raised funds to meet future capital requirements and its corporate expenses for business growth. The Indian Railway Catering Tourism Corporation (IRCTC) of the Railway Department has already brought the IPO. Whereas, RailTEL’s IPO is also coming soon.