The government’s IPO of Indian Railway Finance Corporation (IRFC) is open today i.e. January 18 and will close on January 20. This is the first IPO of the year 2021. Indigo Paints IPO is set to open later this week. The lead manager of the issue of IRFC is DAM Capital Advisors, HSBC Securities and Capital Markets India, ICICI Securities and SBI Capital Markets.
A total of 178.20 crore shares will be issued in IRFC IPO. Of this, 118.80 crore fresh shares will be issued and 59.40 crore shares will be sold through the Government of India (offer-for-sale). The issue price of IRFC will be Rs 25-26 per share. The company hopes to raise Rs 46,00 crore from it. Post IPO, the government’s stake in the company will come down to 86.4 per cent.
What should investors do?
Choice Broking recommends investing in an IPO of IRFC. This IPO is better for investment from a long-term perspective. According to media reports, Nirali Shah, senior research analyst at Samco Securities, said that IRFC Indigo Paints is the major IPO to come in 2021. It is expected that even after this the IPO market will be full. Experts believe that IPO and FPO are benefiting from the returned investment in the market. This is a better sign. Investors are advised to buy into these IPOs and recover their profits if given a chance.
IRFC has raised Rs 1,390 crore from anchor investors. It was established in the year 1986. IRFC works to raise funds for Indian Railways from the domestic and overseas markets. Pune-based Indigo Paints is in the business of making paints. It has a large network across the country. The company has 3 manufacturing facilities in Rajasthan, Kerala and Tamil Nadu.