Indian Railway Finance Corporation (IRFC) IPO: Big development! Check latest news here

In a major development, Indian Railway Finance Corporation (IRFC) has got markets regulator Sebi's approval for its initial public offer (IPO). The IPO comprises a fresh issue of 93.8 crore equity shares and an offer for sale of 46.9 crore equity shares by the Government of India. The observation letter was issued on February 25, 2020, according to an update on the regulator's website.

The Securities and Exchange Board of India's (Sebi) observations are necessary for any company to launch public issues such as IPO, follow-on public offer and rights issue.

The net proceeds 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, according to draft red herring prospectus (DRHP).

IDFC Securities, HSBC Securities and Capital Markets, ICICI Securities and SBI Capital Markets are managing the offer.

The company's equity shares are proposed to be listed on BSE and NSE.

The firm is the dedicated market borrowing arm of Indian Railways, and its primary business is financing the acquisition of rolling stock assets, as per information available in the DRHP.

Noteworthy, Indian Railway Finance Corporation has got Sebi's at the time when SBI Card IPO is creating an unprecedented buzz in the stocks corridors.