Indian Railway Finance Corporation IPO opens today
The Rs 4,633-crore initial public offering of Indian Railway Finance Corporation, the dedicated market borrowing subsidiary of the Indian Railways, opens for subscription on January 18.
The 1,78,20,69,000 equity shares public issue consists of a fresh issue of 1,18,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares by the President of India. The issue includes a reservation of Rs 50 lakh worth of shares for eligible employees.
The issue will remain open till January 20 and the price band for the same has been fixed at Rs 25-26 per share.
Many brokerages have given the issue a thumbs up given the attractive valuation, the low-risk business model, lower credit risk, healthy return ratios, highest ever allocation of capital expenditure for Indian Railways in the Union Budget 2020, and strategic role of Indian Railways in financing growth.