Government to Divest Up to 4% Stake in Indian Railway Finance Corporation via OFS

Government to Divest Up to 4% Stake in Indian Railway Finance Corporation via OFS​

The Government of India will divest up to a 4 percent stake in Indian Railway Finance Corporation Ltd through an Offer for Sale, beginning Wednesday. The move is part of the government’s ongoing stake dilution in public sector enterprises.

The floor price for the Offer for Sale has been fixed at ₹104 per equity share, according to a regulatory filing by the company.

Offer Structure and Timeline​

The stake sale will open for non retail investors on Wednesday, while retail investors can place bids on Thursday.

As per the announcement by Department of Investment and Public Asset Management Secretary Arunish Chawla, the government will initially divest 2 percent equity in IRFC. An additional 2 percent stake will be offered under a green shoe option.

Under the base offer, the government proposes to sell up to 26.13 crore equity shares, representing 2 percent of the company’s total issued and paid up equity share capital. The green shoe option allows the sale of an additional 26.13 crore shares, taking the total potential divestment to 4 percent.

Estimated Fundraising and Pricing Details​

At the floor price of ₹104 per share, the government could raise approximately ₹5,430 crore if the full 4 percent stake is divested.

Ahead of the Offer for Sale, IRFC shares closed at ₹109.40 apiece, down 2.19 percent on the BSE.

Impact on Government Holding​

The government currently holds an 86.36 percent stake in Indian Railway Finance Corporation. Following the completion of the share sale, its holding is expected to decline to 82.36 percent, assuming the entire 4 percent stake is offloaded.

Indian Railway Finance Corporation operates under the Ministry of Railways and plays a key role in financing railway projects and asset acquisitions.