Govt plans to raise Rs 1,500 crore from IRCTC, IRFC IPOs by September

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The government is targeting to raise about Rs 1,500 crore from IPOs (Initial Public Offerings) of two railway companies – IRCTC (Indian Railway Catering and Tourism Corporation) and IRFC (Indian Railway Finance Corporation) – by September, an official said.

More Information:

  • Earlier this year the finance ministry 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.
  • An official said,”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.”
  • IRFC raises funds from capital markets and through borrowing for funding expansion plans of the Indian Railways.
  • IRCTC handles the catering and tourism activity of the railways.
  • While IRCTC IPO could fetch about Rs 500 crore, the IPO of IRCTC could garner close to Rs 1,000 crore to the government.
  • The official added,”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.”
  • The government earlier this month raised about Rs 480 crore by selling 12.12% stake in Rail Vikas Nigam Limited (RVNL).
  • In April 2017, the Cabinet Committee on Economic Affairs (CCEA) had approved the listing of 5 railway companies – IRCON international, RITES, RVNL, IRFC and IRCTC.
  • Out of these 5, IRCON international and RITES were listed in 2018-19.
  • The government has budgeted to raise Rs 90,000 crore by way of CPSE disinvestment in the current financial year, up from Rs 85,000 crore raised last year.

Ashoka Buildcon JV bags Rs 443 crore contract from RVNL

Date: April 18, 2019

Ashoka Buildcon Wednesday said its Joint Venture (JV) has won a Rs 443 crore contract from Rail Vikas Nigam Ltd (RVNL) for works related to doubling of a railway track in Punjab. The project is scheduled to be commissioned in 3 years time.

More Information:

  • The Company’s Joint Venture viz ABL-STS JV, wherein the Company is Lead Member, has received a Letter of Award from Rail Vikas Nigam Limited (RVNL).
  • The work include – Construction of Roadbed, minor bridges, supply of ballast, Installation of track, Electrical, Signaling and Telecommunication works for Doubling of track between Kakrala Halt and Hadiaya…in Ambala Division of Northern Railway, Punjab.”
  • The accepted bid value of the Project is Rs 443.23 crore.
  • The completion period of the project is 36 months from the date of commencement of the work.

About Ashoka Buildcon:

Ashoka Buildcon Ltd. is one of the leading highway developers in India. The Company is an integrated EPC and BOT player. It has a  portfolio of 36 PPP projects, which is the largest in number by any private player in India. Besides construction of highways and bridges the company is also engaged in Power Transmission and Distribution on EPC basis.

Ashoka has worked in over 20 states across the country, and completed prestigious projects for Central as well as State Governments.

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