The government is targeting to raise about Rs. 1,500 crore from initial public offerings (IPOs) of two railway companies namely IRCTC and IRFC by September, stated by an official.
The finance ministry earlier this year initiated the process of launching an IPO of Indian Railway Finance Corporation (IRFC) but the company has told the railway ministry that their borrowing cost will go up if it gets listed, the official said. A final call on this would be taken by the Union Cabinet.
“We are working to bring IPO of Indian Railway Catering and Tourism Corporation (IRCTC) and IRFC by September. IRFC may have to go to Cabinet again after elections,” an official said.
“The draft red herring prospectus would be soon filed with market regulator Sebi for IRCTC and for IRFC, it would be after the elections get over and the government is formed,” added the official.