InvestorQ : What is your take on the two major IPOs coming out during the current week viz. IRFC and Indigo Paints?
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What is your take on the two major IPOs coming out during the current week viz. IRFC and Indigo Paints?

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Dhwani Mehta answered.
2 months ago
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There are two important IPOs that are likely to hit the markets during the current week. The first one is Indian Railways Finance Corporation or IRFC, which is a PSU company affiliated to the Ministry of Railways. The IRFC IPO will be an Rs.4633 crore IPO in which the government will look to reduce its stake via offer for sale.

The IRFC IPO opens on 18 January for subscription and it will close on 20 January. This is part of the government effort to raise as much of disinvestment revenues as possible during the current financial year. The government had set a target of Rs.210,000 crore via disinvestments and with the IRFC issue, the target will just get to Rs.20,000 crore.

The other IPO slated to open during the week is of Indigo Paints which opens for subscription on 20 January. The subscription will close on 22 January. The Indigo IPO will be an Rs.1170 crore IPO which will include a new issue of Rs.300 crore and an offer for sale of Rs.870 crore. Early stage investor, Sequoia Capital, will also partially exit its stake in the IPO.

Even the promoters of the company will be taking a partial exit in the OFS. Indigo Paints operates at an all-India level in the highly profitable decorative paints segment. Both the IPOs put together will be raising close to Rs.5800 crore in the new issues market this week. The IPO of Indigo Paints stock is already quoting at 50% premium in terms of the GMP.

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