TWO IPOS TO HIT MARKET THIS WEEK, EYE OVER ₹5,800 CRORE

Two companies— Indian Railway Finance Corporation and Sequoia Capitalbacked Indigo Paints—are set to hit the market with their initial share-sale offers this week to raise an estimated over ₹5,800 crore.

The companies are expecting to benefit from an equity market, which is flush with liquidity and has seen a sharp increase in new retail investors.

The three-day initial sharesale of Indian Railway Finance Corporation (IRFC) would be open for public subscription during January 18-20, while the IPO of Indigo Paints would open on January 20 and conclude on January 22.

IRFC IPO comprises up to 178.20 crore shares, comprising a fresh issue of up to 118.80 crore and offer-for-sale of up to 59.40 crore shares by the government.

The price band has been fixed in the range of ₹25-26 per equity share and at the upper end of the price band, the IPO is expected to fetch ₹4,633.4 crore.

On Friday, the company raised ₹1,390 crore from anchor investors.

IRFC, set up in 1986, is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. Its primary objective is to meet the predominant portion of “extra budgetary resources” requirement of the Indian Railways through market borrowings at the most competitive rates and terms.

The Union Cabinet had in April 2017, approved listing of five railway companies. Four of them—IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and Indian Railway Catering and Tourism Corp -- have been listed.