The Indian Railway Finance Corporation on Friday raised a little over Rs 1,398 crore from 31 anchor investors ahead of its initial public offer (IPO) that opens for subscription on Monday.

A total of 5,34,563,007 equity shares were allocated to 31 anchor investors at an upper price band of Rs 26 per equity shares. At this price, IRFC has garnered Rs 1,398.63 crore from anchor investors, the company said Ina statement.

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This is the first time when a govt-owned company has made provisions for allotment to anchor investors that will provide assistance in generating more value for the IPO.

These anchor investors include: HDFC Trustee Company Ltd, Nippon Life India Trustee Ltd, Government of Singapore, Monetary Authority of Singapore, Kuwait Investment Authority Fund, Kotak Mahindra (International) Ltd, Goldman Sachs (Singapore) PTE, Tata AIG General Insurance Co Ltd and Aditya Birla Sun Life Insurance Co Ltd.

The issue is of up to 178.20 crore shares, comprising a fresh issue of up to 118.80 crore shares and offer for sale of up to 59.40 crore shares by the government.

The company’s principal business is to borrow funds from the financial markets to finance acquisition/ creation of assets which are then leased out to the Indian Railways.

The Rs 4,633 crore IRFC’s IPO is set to open for public on January 18 and close on January 20. The price band of the issue has been fixed at Rs 25 to Rs 26 per equity share.

The Union Cabinet had in April 2017 approved listing of five railway companies. IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and Indian Railway Catering and Tourism Corp has already been listed.

IRFC, set up in 1986, is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. Its primary objective is to meet the predominant portion of ‘extra budgetary resources’ requirement of the Indian Railways through market borrowings at the most competitive rates and terms.