IRFC’s Rs 4,500-crore IPO subscribed 3.7 times on the final day




State-owned (IRFC) garnered 3.5 times subscription, helping the Centre mop up Rs 1,500 crore. The retail and institutional portion of the issue was subscribed around 3.7 times each, while the high net-worth individual portion garnered 2.7 times subscription.


Market players said the response was lukewarm when compared to some of the recent issues. They said the large issue size and unattractive grey market premium led to the tepid response. The overall issue size was Rs 4,500 crore—two-thirds of it being fresh fund raise. The employee portion of the IPO was subscribed 44 times. At the top-end of the price band of Rs 26, will have a market capitalisation of nearly Rs 34,000 crore — almost equal to its FY20 book value on the diluted basis.



is responsible for financing about 30-45 per cent capex of the Indian Railways. It is mainly engaged in financing the acquisition of rolling stock assets and other assets. It also lends to other entities under the Ministry of Railways. Following the IPO, the government’s holding in the company will decline from 100 per cent to 86.4 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link