2 Indian Railway Units to Come Out With IPOs by September

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Two railway central public sector enterprises (CPSE) may come out with their initial public offerings (IPO) by September to raise about Rs 1,500 crore, reported PTI citing sources. IRCON (formerly known as Indian Railway Construction Company Limited) has already approached the SEBI with IPO papers while IRFC (Indian Railway Finance Corporation) would soon be filing the draft prospectus with the regulator too.

2 Indian Railway Units to Come Out With IPOs by September

After the success of RITES IPO in June(subscribed 67 times), the government plans to launch these two units in the capital market for initial share sale and subsequent listing. RITES was listed at a 3 percent premium.

According to PTI reports, the government plans on divesting 10 percent stake or over 99 lakh shares through IRCON IPO. The IPOs aim to garner Rs 1,000 crore from IRFC and Rs 500 crore from IRCON.
Last month, another railway PSU (public sector unit) RVNL (Rail Vikas Nigam Limited), which is into building infrastructure for high-speed rail received SEBI’s go-ahead signal to float an IPO for the sale of 10 percent stake or 2.08 crore equity shares.

Other PSUs like Indian Renewable Energy Development Agency (IREDA), Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, have also filed for IPOs.

The government has raised about Rs 9,000 crore via Bharat-22 ETF and RITES stake sale, in the first three months of this fiscal year. Its target is to raise Rs 80,000 crore from PSU disinvestment in current fiscal, which is lower than over Rs 1.03 lakh crore in the last fiscal.

This story has not been edited by Topic Hunt (with the possible exception of the headline) and has been generated from a syndicated feed. (GoodReturns)

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