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Blog Entry# 679637
Posted: Feb 25 2013 (19:13)

5 Responses
Last Response: Feb 25 2013 (19:45)
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Feb 25 2013 (19:13)   NDLS/New Delhi (16 PFs)
 
SRG^~
SRG^~   44887 blog posts
Entry# 679637            Tags  
Dear Members,
We have seen that the IR is facing Financial Crunch and its direct effects are being shown in delays of execution of Projects and due to this delays the Estimated costs going high as time passes on so on so fourth...This is Just as an thought shouldn't IR consider a Idea of going for a "IPO" to raise funds from outside to fund its projects which various organizations and PSU companies do...I Don't know how Practically its feasible but thought of discussing it.But I am sure if would get very good response if it decides to do so.
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from Members & any Market based experts are very much welcome.

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Feb 25 2013 (19:19)
AjayanKrishnan~
AjayanKrishnan~   2619 blog posts
Re# 679637-2              
Indian Railway Finance Corporation Limited, dedicated financing arm of the Ministry of Railways (MoR), will open its Public Issue of tax free, secured, redeemable, non-convertible bonds of face value of Rs 1,000 each in the nature of debentures on January 21, 2013. The issue is worth Rs. 10,000 crores, during the Fiscal 2013. This tranche issue by the company is of bonds aggregating to Rs 1,000 crore with an option to retain oversubscription up to the Shelf Limit (i.e., up to Rs 8,886.40 crore).
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The funds raised through this issue will be
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utilized towards financing the acquisition of rolling stock which will be leased to the MoR in line with present business activities.

The Bonds are proposed to be listed on BSE Limited and National Stock Exchange of India Limitedwithin 12 working days of the Issue closing date.
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SBI Capital Markets Limited, A.K. Capital Services Limited, Axis Capital Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the Lead Managers to the Issue. Karvy ComputersharePvt. Ltd. is the Registrar to the Issue, while SBICAP Trustee Company Ltd. is Trustee for the Bondholders.

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Feb 25 2013 (19:21)
SRG^~
SRG^~   44887 blog posts
Re# 679637-3              
Thanks for the Info sir...Good to see different options are explored.
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Feb 25 2013 (19:21)
Rang De Basanti^   59639 blog posts
Re# 679637-4              
IPO :- C/O Soumitra
But then, people invest in IPOs to earn returns, while rlys is losing money operationaly, but trying to earn other income thro Land lease and other ventures.
Plus IPO involves having ind directors along with Govt nominess, and no or minimal say of Govt, which again Govt will not let happen.See the PSUs having shares listed. Govt is trying to bleed even Coal India, its most profitable PSU.
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way is to earn thro Bonds where indicative returns are fixed like thro IRFCI bonds etc

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Feb 25 2013 (19:45)
SRG^~
SRG^~   44887 blog posts
Re# 679637-6              
Thanks for the Info sir..True there are some obstacles but they can consider this option as well,also necessary changes to make it happen can be considered..They can come up with a separate division to entrust all the handling regarding this,I feel in near future it might happen.
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