The Indian Railway Finance Corporation (IRFC) has got Securities and Exchange Board of India's(SEBI) approval for its Initial Public Offer (IPO). The IPO comprises fresh issue of 93.8 crores equity shares and an offer for sale of 46.9 crore equity shares by the Government of India.
The inquiry letter was published on 25 February 2020, according to an update on SEBIs website. SEBI inspections are essential for any company to start public subjects such as IPO, follow-on with the public offer and rights issue.
The net gains are proposed to be appropriated towards expanding the company's investment assets base to fit expected capital necessities arising out of growth in business and general corporate purposes as per the Draft Red Herring Prospectus (DRHP).
The offer is being managed by IDFC Securities, HSBC Securities and Capital Markets along with ICICI Securities and SBI Capital Markets. The equity shares of the company have been proposed to be listed on BSE and NSE.
As per the information available in the DRHP, the firm is the dedicated market borrowing arm of Indian Railways, and its primary business is financing the acquisition of rolling stock assets.
Author: Asif Iqbal
