Government Raises Over ₹2,100 Crore via IRFC Share Sale; Investors Show Strong Faith in Railway PSU
Retail Enthusiasm Drives State-Owned IRFC Share Sale to Raise Funds
The government successfully completed the Offer For Sale (OFS) of shares in the Indian Railway Finance Corporation (IRFC). This move generated approximately ₹2,100 crore for the public exchequer.Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla confirmed the successful sale on Thursday. He stated that a total of 22.88 crore shares were sold to minority shareholders across two trading days. The combined proceeds from investors amounted to an estimated ₹2,084 crore.
Chawla expressed gratitude to all participating investors for their confidence and involvement in the share offering. This divestment aims to bolster government finances while allowing the PSU to operate efficiently.
Details of IRFC Share Sale and Pricing Structure
The government utilized the green shoe option on Wednesday during the IRFC share sale process. This allowed for a 2 per cent dilution in the Railway Ministry's public sector undertaking (PSU).A fixed floor price of ₹91 per share was set by the Department for this offering. This pricing represented a 7.8 per cent discount compared to the closing price of IRFC shares on Tuesday at the BSE.
Despite the sale, IRFC shares closed marginally lower on Thursday. The stock finished at ₹91.78 on the BSE, reflecting a decline of 0.8 per cent for the day.
Disinvestment Progress Across Other PSUs and Banks
The sale of IRFC shares is part of a broader government strategy involving disinvestment across various public sector undertakings (PSUs).Prior to the IRFC offering, the government had already sold minority stakes in five other central public sector enterprises. This sustained disinvestment drive has accumulated total proceeds amounting to ₹16,480 crore in the current fiscal year.
The proceeds are derived from several major sales. Coal India contributed ₹5,542 crore towards this goal. NHPC generated ₹4,357 crore through its stake sale.
Government’s Disinvestment Portfolio Breakdown
Key contributions to the government's disinvestment target come from strategic PSUs and financial institutions. GIC shares sold accounted for ₹3,090 crore. Central Bank of India contributed ₹2,266 crore. NLC India added ₹1,223 crore to the proceeds.These figures highlight the steady momentum in the government's plan to monetize public assets. The combined sales ensure significant revenue generation as the disinvestment process continues across various sectors.
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