- OFS in Indian Railway Finance Corporation opens Wednesday for non-retail investors, Thursday for retail
- Centre plans to divest 1% equity stake in IRFC, with a green shoe option to sell another 1%
- Previous 2% share sale in February saw 94.98% subscription from institutional investors
The government's Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC) will open on Wednesday for non-retail investors, while retail investors will be able to place their bids on Thursday.
Through the OFS, the Centre plans to divest a 1% equity stake in the state-owned railway financing company. The government has also included a green shoe option to sell an additional 1% stake, taking the total offer size to up to 2% of the company's equity if there is strong investor demand.
The government has fixed the floor price at Rs 91 per share. Through the OFS the governemnt will offload 26.1 crore share with the base offer only including 13.1 crore shares.
The OFS route allows the government to reduce its shareholding in listed public sector enterprises while helping meet minimum public shareholding norms and supporting its disinvestment programme.
Government in February had opened an OFS for 2% share sale but failed to get full subscription from institutional investors.
Institutional investors placed bids for over 22.34 crore IRFC shares, which is 94.98 per cent of the over 23.52 crore shares reserved for them in the offer for sale (OFS).
At an indicative price of Rs 104.12 apiece, institutional investors put in bids for about Rs 2,326 crore.
ALSO READ: IRFC Q4 Results: Net Profit At Rs 1,684 Crore, Income Up 9% YoY
The government had proposed to sell over 26.13 crore shares or a 2% stake in IRFC with a green shoe option of an equal number in the two-day OFS. The floor price was set at Rs 104 apiece.
The government currently holds an 84.65% stake in the railway sector enterprise.
IRFC Q4 Result Highlights
The PSU's net profit marginally rose 0.1% to Rs 1,684 crore in the fourth quarter of FY26 from Rs 1,682 crore in the corresponding period previous year. Total income rose 9% to Rs 7,329 crore from Rs 6,724 crore on an year on year basis.
During FY26, IRFC sanctioned projects worth Rs 72,949 crore and disbursed approximately Rs 35,067 crore. It secured bids worth around Rs 56,251 crore, while key transactions, IRFC refinanced Dedicated Freight Corridor Corporation of India Limited's (DFCCIL) World Bank exposure through a Rs 9,821 crore long-term rupee facility, resulting in savings of approximately Rs 2,700 crore, the company said.
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