Indian Railway Finance Corporation (IRFC) plans to float bonds worth up to Rs 3,000 crore on February 26, market sources said.
The bonds have a base issue of Rs 500 crore with a greenshoe option of Rs 2,500 crore and a maturity of 10 years ending on February 28, 2034.
The greenshoe option is a provision in an underwriting agreement that grants the underwriter the right to sell investors more bonds than initially planned by the issuer if the demand for a security issue proves higher than expected.
Bidding for these bonds will take place between 10am and 11am on the electronic bidding platform of the National Stock Exchange of India (NSE).
The pay-in date of the bonds is February 28 when exchange of bonds and money will take place between issuers and investors.
The bonds have been rated ‘AAA’ with ‘stable’ outlook by CRISIL, ICRA, and CARE ratings.
According to sources, minimum application of the bonds is Rs 1 crore and in multiples of Rs 1 lakh thereafter.
On February 22, Canfin Homes, Manba Finance, Satya Microcapital, Aditya Birla Finance, Krazybee Services Pvt Ltd, Aye Finance and Ledingkart Finance also raised funds through bonds.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
