After raising money successfully, Indian Railway Finance Corporation (IRFC) will close its issue of tax-free bonds on Friday, a week earlier than the scheduled closing on February 10. Subscription to the institutional and high net worth individual (HNI) portion closed on Wednesday, garnering Rs 17,000 crore. The retail portion generated Rs 1,890 crore, of which Rs 1,700 crore came till Wednesday. On an average, IRFC got Rs 250 crore a day for the retail portion.
The bond size was Rs 3,000 crore, with an over-allotment option of Rs 3,300 crore.
Said a well placed source, "The issue is being closed as there was over-subscription from corporate and HNIs on the first day itself. Allotments are yet to be made, which will be on a first-come, first-serve basis, except for those who applied on the first day. The latter will be allotted bonds on a pro-rata basis.”
Rated AAA by Fitch, the issue has 30 per cent reserved for retail investors, 25 per cent for HNIs and 45 per cent for corporate and qualified institutional buyers (QIBs). IRFC is offering 8.15 per cent for 10 years and 8.30 per cent for 15 years to retail investors. QIBs and HNIs had been offered 8 per cent and 8.10 per cent for 10 and 15 years, respectively.
