Indian Railway Finance Corporation Limited: President of India Proposes Offer for Sale of Equity Shares
The President of India, acting through the Ministry of Railways, Government of India, has proposed an Offer for Sale (OFS) of equity shares in Indian Railway Finance Corporation Limited. The sale is being conducted to achieve minimum public shareholding in the company and involves multiple tranches targeting different investor categories.The offering is managed exclusively through the Seller's Brokers on a dedicated window provided by the stock exchanges.
Offer Details and Structure
The proposed offer comprises three main components: the Base Offer Size, an Oversubscription Option, and a specific Employee Offer. The shares of Indian Railway Finance Corporation Limited, which have a face value of 10 each, are being offered to investors through both BSE and NSE platforms.Key details regarding the total offering are summarized below:
| Offering Component | Maximum Quantity (Equity Shares) | Representation in Capital |
|---|---|---|
| Base Offer Size | Up to 130,685,060 | 1% of total paid up equity share capital |
| Oversubscription Option | Up to 130,685,060 | 1% of the total issued and paid up equity share capital |
| Employee Offer | Up to 25,000 | Approximately 0.0002% of the total issued and paid up equity share capital |
The Seller designated Goldman Sachs (India) Securities Private Limited as the sole broker for the offer. The Floor Price set for the shares in the Offer is 91.00 per Equity Share, with nil Retail and Employee Discount.
Timeline and Allocation Methodology
The sale process is scheduled across two trading days, with specific categories having different participation rules:- T Day (Non-Retail Investors): June 24, 2026
- T+1 Day (Retail, Employees, Carry Forward Non-Retailers): June 25, 2026
The allocation mechanism differs across the investor categories:
Non-Retail Category Allocation:
Non-Retail Investors have the option to carry forward un-allotted bids from T day to T+1 day. The allocation for this category is based on a price equal to the Cut-Off Price or higher. A minimum of 25% of the Offer Shares must be reserved for Mutual Funds and insurance companies registered with the Insurance Regulatory and Development Authority, subject to successful bidding at or above the Floor Price.
Retail Category Allocation:
A maximum of 10% of the Offer Shares is reserved for Retail Investors. Retail Investors may bid at any price above the Floor Price or at the Cut-Off Price (the lowest price at which shares are sold in the non-Retail category).
Employee Category:
Eligible employees may apply for Equity Shares up to 25,000, and they can apply for a maximum of 500,000 shares. Employees must bid at the Cut-Off Price determined by the non-Retail category sales.
The Offer is being conducted under strict conditions regarding bidding conduct and settlement. All investors are required to adhere to the terms of the OFS Guidelines during participation.
IRFC Stock Price Movement
Shares of Indian Railway Finance Corporation Limited slipped today, closing at ₹98.67 after shedding 2.51% in post-market trading. The equity traded within an intraday range bounded between ₹98.2 and the day's high of ₹101.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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