The public offering will consist of a fresh issue of 118 crore equity shares and an offer for sale of 59.4 crore equity shares by the Government of India, to the draft red herring prospectus (DRHP) filed with Sebi. According to bankers, the company will raise Rs 3,100 crore through fresh issue while the government will garner Rs 1,400 crore. Post IPO, the government holding in the company will come down to 86 per cent.
The Company received a fund infusion of Rs. 2,500 crore from the government in March 2020 to tide over the Covid crisis, but the business has not been impacted by the prevalence of Covid, according to Amitabh Bannerjee, CMD, IRFC.
“We are hopeful of completing the capital market transaction in next two months.” Amitabh Bannerjee told ET.
Last month in an investor interaction hosted by the Mumbai based DAM Capital, Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), said that anchor allocations in public-sector IPOs are a key part of the value unlocking process and the government will be open to exploring it.
“Some of the foreign investors were not very keen to bid in the main book – as they did not want to get into the bidding game by putting in bids with huge amounts and getting small amounts allocated. Oversubscription would require committing that much money,” said one of the bankers.
The Company received a fund infusion of Rs. 2,500 crore from the GoI in March 2020 to tide over the Covid crisis. The Company has disclosed its FY20 numbers in the addendum – since the Company turned a significant profit in FY20, the EPS has gone up to Rs. 3.93 per share from 3.43 per share (despite an increased capital base due to the GoI fund infusion). Similarly, the RoNW has increased from 9.93 per cent to 13.19 per cent from FY19 to FY20.
As per a communication by the Ministry of Corporate Affairs in March 2020 regarding accounting standards, the Company has reversed a deferred tax liability of more than Rs. 6,440 crore, which has resulted in an increase in net worth on a retrospective basis from FY18 onwards
The Board of Directors has seen significant change following the expiry of the terms of the previous Board members, as has been disclosed in the addendum.