New Delhi, July 20 (IANS) Activating the IPO pipeline, the government plans to offload 10 per cent in Indian Railway Finance Corporation (IRFC) through listing by September in a bid to raise Rs 1,000 crore.
"We are in the process of listing the IRFC for IPO to offload 10 per cent by September. It could fetch us Rs 1,000 crore," sources said.
IRFC, the finance arm of the Indian Railway, raises financial resources through capital markets and other borrowings for expansion and running of the Railways.
"The IRFC will approach Securities and Exchange Board of India (SEBI) for a draft prospectus after a merchant banker is appointed," said sources.
The Department of Investment and Public Asset Management (DIPAM) is bullish about listing the Railways' subsidiaries for an IPO as it has found interest among investors for being a safe public sector undertaking (PSU) entity.
Another railways arm RITES also saw sound success in its IPO last month, when it was subscribed 67 times.
DIPAM raised Rs 466 crore through another railways arm Rail Vikas Nigam Ltd (RVNL) -- in the first IPO of the fiscal year. The government divested 12.12 per cent stake in RVNL.
In all, 10 PSUs are lined up for IPOs this year to achieve the disinvestment target of Rs 1.05 lakh crore in the current fiscal.
Telecommunication Consultants (India) Ltd (TCIL), RailTel Corporation India Ltd, National Seed Corporation India Ltd (NSC), Tehri Hydro Development Corporation Ltd (THDCIL), Water & Power Consultancy Services (India) Ltd (WAPCOS) and FCI Aravali Gypsum and Minerals (India) Ltd (FAGMIL), National Seeds Corporation are some of the companies proposed for IPOs.
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