The 2021 IPO season begins today. The first Initial Public Offer (IPO) will open on January 18 and close on 20. Indian Railway Finance Corporation (IRFC) will raise Rs 4,633 crore from the IPO. Its price band has been fixed at Rs 25 – 26. Indigo Paints IPO will also be launched this week, which will open on January 20 and close on January 22.
Can apply for 575 shares
IRFC is a government company. In this, you can apply for at least 575 shares. 575 shares are held in one lot. A maximum of 13 lots can be applied. Indian Railway Catering Tourism Corporation (IRCTC), a railway company, has already launched an IPO. Rail Development Corporation’s IPO is also coming soon.
Around 1400 crores raised from anchor investors
IRFC has raised about Rs 1,398 crore from anchor investors on Friday. For this, the company issued 33 crore equity shares to a total of 31 anchor investors at the rate of Rs 26 per share. These anchor investors include HDFC Trustee Company Limited, Nippon Life India Trustee Limited, Government of Singapore, Kuwait Investment Authority Fund, Kotak Mahindra (International) Limited, Goldman Sachs (Singapore) PTE, and Tata AIG General Insurance Company Limited.
178 crore shares will be issued in IPO
About 178.20 crore shares are being issued in the IPO of the government company. Of this, 118.80 crore shares are the fresh issues, while 59.40 crore shares are being held for an offer for sale (OFS). IRFC is issuing about 13.64% of its entire paid-up capital through this IPO, from which the government plans to raise about Rs 4,633.4 crore. Post-IPO, the government’s stake in the company will come down to 86.4%. In this IPO, 5 million shares will be reserved for IRFC employees. The funds raised from the IPO will be used to meet future capital requirements and general corporate needs for business growth.
Sequoia will sell a stake in Indigo Paints
Paints sector company Indigo Paints has raised Rs 1,176 crores from IPO. Aimed to raise. Sequoia Capital holds a major stake in Indigo Paints. The company will issue shares for Rs 300 crore. 58.40 lakh shares will be issued through Offer for Sale (OFS). Sequoia Capital and promoters Hemant Jalan will sell their stake in it. The IPO of Indigo Paints will be managed by Kotak Mahindra Capital Company, Edelweiss Financial Services, and ICICI Securities.
The money will be spent on the expansion of manufacturing
The company will use the IPO proceeds to expand the manufacturing unit at Pudukkottai in Tamil Nadu and for general corporate operations. The Pune-based company had three manufacturing units up to September quarter, located in Rajasthan, Kerala and Tamil Nadu.
A total of 16 companies launched IPOs in 2020, under which 31 thousand crore rupees were raised. Earlier in 2019, 17 companies raised a total of Rs 17,500 crore through IPO.