The initial share sale of Indian Railways Finance Corp. oversubscribed on the final day of subscription, led by higher demand from institutional and retail investors.
The issue by the dedicated market borrowing arm of the Indian Railways was subscribed 2.48 times as of 2:25 p.m. on Jan. 20, according to data available on the bourses. The IPO will close on Jan. 20.
Subscription details:
- Institutional investors: 2.43 times
- High net worth individuals: 95.4%
- Retail investors: 3.16 times
- Employees: 33.2 times
The maiden offer comprises a fresh equity issue of up to 118 crore equity shares and an offer-for-sale for up to 59.4 crore shares by the government. The price band for selling shares was fixed at Rs 25-26 apiece, according to its red herring prospectus.
The company, according to an exchange filing, has raised Rs 1,389.86 crore by allocating shares to anchor investors, including HDF Equity Fund, Government of Singapore, Nippon India Tax Savers Fund, among others.
The IPO, which is the first by a government-owned non-bank lender, also comes at a time when participation of retail investors in the equity markets in India and around the world has increased following the pandemic-induced lockdowns.
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