IRFC OFS opens: Govt to offload up to 4% stake, aiming to raise around ₹5,430 crore; shares fall over 4%. Details you need to know

The stock was in the red as the government has decided to divest up to a 4% stake in the state-owned entity through an offer for sale (OFS) commencing on Wednesday.

The company's stock price declined as much as 4.22% to hit a low of ₹104.82 on the NSE.

The government has fixed the floor price of ₹104.00 per equity share for the OFS, IRFC said in a regulatory filing.

At ₹104 per unit, the government would be able to garner about ₹5,430 crore by offloading up to a 4% stake in the company under the Ministry of Railways.

"Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for non-retail investors. Retail investors can bid on Thursday. The government offers to disinvest 2% equity in the IRFC with an additional 2% as a green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

Shares of IRFC closed at ₹109.40 per unit, down 2.19% on the BSE.

The government proposes to sell up to 26.13 crore (26,13,70,120) shares, or a 2% base offer size, with an option to additionally sell 26.13 crore shares, representing another 2% of the total issued and paid-up equity share capital of the company, it said.

The government currently holds an 86.36% stake in the company.

Post the share sale, the government's stake will reduce to 82.36%.

IRFC Q3 FY26 earnings

Indian Railway Finance Corporation Ltd (IRFC) reported a 10.51% increase in net profit to ₹1,802 crore for the third quarter ended December 2025.

The NBFC, under the administrative control of the Ministry of Railways, had earned a net profit of ₹1,631 crore in the year-ago period.

The total income of the company declined marginally to ₹6,719 crore in the October-December period from ₹6,766.39 crore a year ago, IRFC said in a regulatory filing.

The total expenses of the Mini-Ratna company during the period under review declined to ₹4,917.04 crore from ₹5,135.7 crore in the corresponding period a year ago.

The net worth of the company rose to ₹52,046 crore at the end of December 2024, compared to ₹47,443 crore at the end of the third quarter of the previous fiscal year.

The company achieved annual sanction guidance of ₹60,000 crore within nine months.

IRFC's assets under management (AUM) rose to a record ₹4.75 lakh crore as of December 31, 2025.

About IRFC

Indian Railway Finance Corporation (IRFC) was set up on December 12, 1986, as the dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas capital markets.

IRFC is a Navratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India. It is also registered as a systemically important non-deposit-taking non-banking financial company (NBFC – ND-SI) and an infrastructure finance company (NBFC-IFC) with the Reserve Bank of India (RBI).

In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.

Objective

The primary objective of IRFC is to meet the predominant portion of the ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The company's principal business, therefore, is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways.