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IRFC OFS Opens: Government Divests Railways Finance Shares
25 Feb
Summary
- Government offers 2% stake in IRFC, with an option for another 2%.
- The floor price for the offer is set at ₹104 per share.
- IRFC stock is down 52% from its record high of ₹229 in July 2024.
The Government of India has launched an Offer For Sale (OFS) for shares of Indian Railways Finance Corporation Ltd. (IRFC), commencing on February 25, 2026, for non-retail investors. This divestment aims to reduce the government's stake by an initial 2%, with a provision for an additional 2% sale via a green shoe option.
The floor price for the OFS has been set at ₹104 per share, representing a discount to IRFC's closing price on the previous day. As of the December quarter, the government held an 86.36% stake in IRFC. Should the green shoe option be fully exercised, the government could raise approximately ₹5,436 crore.
IRFC shares experienced a significant rally from March 2023 through July 2024, reaching a record high of ₹229. However, the stock has since entered a correction phase, currently trading 52% below its peak. Despite this recent downturn, the shares remain up fourfold since their IPO debut in 2021 at ₹26 per share.
