IRFC OFS Opens For Institutions On Wednesday, Govt To Sell Up To 2% Stake Via Offer For Sale

Mumbai: The government will begin its offer for sale (OFS) for Indian Railway Finance Corporation (IRFC) on Wednesday, aiming to sell up to a 2 percent stake in the railway financing company.

The stake sale will open first for non-retail investors on Wednesday. Retail investors will be allowed to place bids on Thursday.

The Department of Investment and Public Asset Management (DIPAM) announced the OFS through a post on X.

1 percent Base Offer, 1 percent Green Shoe

According to DIPAM Secretary Arunish Chawla, the government will initially sell 1 percent equity in IRFC.

In addition, an extra 1 percent stake has been kept under the green shoe option. This gives the government flexibility to sell more shares if investor demand remains strong.

Together, the total sale size can reach 2 percent of IRFC's equity.

The floor price for the OFS has not been announced yet. This price is important because it will decide the minimum rate at which investors can place bids.

Stock Ends Lower

IRFC shares ended lower on Tuesday ahead of the stake sale announcement.

The stock closed at Rs 98.69 on the BSE, down 2.16 percent from the previous session.

Market participants often track OFS announcements closely, as such stake sales can temporarily affect stock prices due to higher supply in the market.

Boost to Disinvestment Drive

The IRFC OFS is part of the government's broader disinvestment programme.

So far in the current financial year, the government has sold minority stakes in five central public sector enterprises and banks.

These transactions have helped the government raise around Rs 16,480 crore through disinvestment so far.

The latest IRFC stake sale is expected to further strengthen government revenue mobilisation while improving public shareholding in the PSU.

(With PTI Inputs)