The public issue of tax-free bonds by Indian Railway Finance Corporation (IRFC) saw a considerable response on Day 1, with investors bidding 3.86 times the notified amount of R2,450 crore, according to information provided by bond market sources.
The total subscription amount stood at R9,452.48 crore. The highest response was seen from the institutional buyers who bid 16.29 times the allotted amount of R245 crore. This was followed by the NII category which subsribed 8.52 times the allotted quota of R367.50 crore.
The HNI category subscribed 3.46 times the allotted quota of R367.50 crore. Retail investors, however, bid just 0.72 times the allotted size of R1,470 crore.
IRFC was offering a coupon rate of 7.29% and 7.64% on its 10 and 15-year papers respectively to retail investors. The company was offering 7.04% and 7.35% on its 10 and 15-year papers to other category investors.