IRFC OFS opens for retail investors; check details, Day 1 subscription status

Shares of Indian Railway Finance Corporation (IRFC) were in the spotlight on Thursday, June 25, as the government's offer for sale (OFS) opened for retail investors.

The institutional portion of the issue witnessed strong demand on Day 1, garnering subscriptions of 1.86 times the shares on offer. Encouraged by the strong response, the Centre has exercised the green shoe option, increasing the size of the stake sale.

Shares of the company ended at ₹92.50 apiece on the NSE.

IRFC OFS

The Centre's divestment drive gathered further momentum on Wednesday, June 24, as the offer-for-sale (OFS) in Indian Railway Finance Corporation (IRFC) opened for non-retail investors. Through the OFS, the government is looking to offload up to a 2% stake in the railway financing company, making it the sixth divestment transaction of FY27.

Prior to the IRFC issue, the government had pared its holdings through OFS transactions in several public sector enterprises and banks, including Coal India, NHPC, General Insurance Corporation of India (GIC), Central Bank of India, and NLC India, helping it garner significant disinvestment proceeds so far this fiscal.

In a post on X, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the government offers to disinvest 1% equity in the IRFC along with an additional 1% as a green shoe option.

Details

Over 26.13 crore shares representing 2% stake in IRFC will be put on offer in the two-day share sale. At the floor price, the stake sale will fetch over ₹2,300 crore to the exchequer.

The floor price of ₹91 per share is at a discount of 7.79% over Tuesday's closing price on BSE.

Shares of IRFC closed at ₹98.69, down 2.16% over the previous close on BSE. On the NSE, the stock settled at ₹98.67 on Tuesday, down 2.21%.

"Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday," the X post said.

In the current fiscal, the government has sold minority stakes in five central public sector enterprises and banks, taking the total disinvestment proceeds to ₹16,480 crore so far.