IRFC files IPO draft papers with Sebi
The Indian Railway Finance Corporation has filed draft papers with markets regulator Sebi for its initial public offering (IPO).
The public issue is of up to 140,70,69,000 equity shares, of which up to 93,80,46,000 equity shares are fresh issue, and up to 46,90,23,000 equity shares are offer for sale, according to the draft red herring prospectus (DRHP).
The net proceeds from the offer are proposed to be utilised towards augmenting the company's equity capital base to meet future capital requirements arising out of growth in business and general corporate purposes, it said.
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IDFC Securities, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets are the book running lead managers to the issue.
The shares of the company are proposed to be listed on the BSE and the NSE.
The company was incorporated as the dedicated market borrowing arm for the Indian Railways and has played a strategic role in financing the latter's operations, as per the draft prospectus.
Earlier, in December 2019, the Cabinet approved the downsizing of Railway Board, which will have four members instead of eight, besides the Chairman, and merging of its cadres and departments into a single entity.
Union Minister Piyush Goyal asserted that the major restructuring will end the 150-year-old legacy of "departmentalism" that was marked by inefficiency and promote smooth working.
Instead of Railway Board Members for traffic, rolling stock, traction, and engineering, the newly constituted board will have one member each for infrastructure, operations and business development, rolling stock, and finance. There will be some independent members with at least 30 years of experience at the top level in industry, finance, economics and management fields, the Minister said.
All the remaining posts of the Railway Board shall be open to all officers regardless of the service to which they belong.
Indian Railways will now have only one cadre - Indian Railway Service - instead of the current eight services for various departments, including engineering, traffic, mechanical, and electrical.