IRFC IPO is all set to open for subscription on 18 January 2021 as the first public offer in the new year. The upcoming IPO is priced at INR25 – 28 per share and the company plans to mobilize as much as INR4,990 crore at the upper end of the price band. Let’s take a look at IRFC IPO GMP right after the vital details of the offer:
IRFC Public Offer details
| Subscription Dates | 18 – 20 January 2021 |
| Price Band | INR25 – 28 per share |
| Fresh issue | 1,188,046,000 shares (INR2,970.11 – 3,326.53 crore) |
| Offer For Sale | 594,023,000 shares (INR1,485.06 – 1,663.26 crore) |
| Total IPO size | INR4,455.17 – 4,989.79 crore |
| Minimum bid (lot size) | 575 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Given its size, investors have better allotment chances in IRFC IPO. At the same time, the company has impressive financial performance which makes it one of the interesting IPOs this year. Although the grey premium isn’t very strong in this IPO, the rates are increasing and buoyant sentiments in the secondary markets are likely to result in oversubscription for this offer.
Read Also: Upcoming IPOs in 2021 – Most interesting IPOs lined up
IRFC IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 28 Jan 2021 | 0.3 – 0.4 | – | – |
| 27 Jan 2021 | 0.5 | – | 400 |
| 25 Jan 2021 | 0.5 | – | 400 |
| 23 Jan 2021 | 0.5 | – | – |
| 22 Jan 2021 | 0.5 | 250 | – |
| 21 Jan 2021 | 0.7 | 300 | – |
| 20 Jan 2021 | 1.0 | 300 | 600 |
| 19 Jan 2021 | 1.2 | 400 | – |
| 18 Jan 2021 | 1.5 | 400 | 800 |
| 15 Jan 2021 | 1.4 | 400 | – |
| 14 Jan 2021 | 1.5 | 400 | – |
| 13 Jan 2021 | 2 | 500 | 1,200 |
| 12 Jan 2021 | 1.75 | 500 | 1,200 |
| 11 Jan 2021 | 1.75 | 500 | 1,100 |
| 9 Jan 2021 | 1.5 | 400 | 1,000 |
The PSU under the Ministry of Railways acts as the financing arm of Indian Railways and offers project financing and rolling stock leasing to railways. The company boasts of superb profitability which stood at 26.7% in FY2020 and being a PSU, it pays regular dividends. Given the governments continued focus on railway infrastructure upgradation, IRFC has bright future and its low-risk business model makes it a suitable investment option for IPO investors.
