New Delhi, February 26: The government’s offer for sale of a 2 percent stake in Indian Railway Finance Corporation Ltd failed to garner full subscription on the final day, as both institutional and retail investors showed limited interest in the issue.
The two day OFS, which opened on February 24, involved the sale of over 26.13 crore shares at a floor price of Rs 104 per share. The offer also included a green shoe option for an equal number of shares, allowing the government to increase the issue size based on demand.
Institutional Investors Subscribe 94.98% of Reserved Portion
Of the 23.52 crore shares allocated to institutional investors, bids were received for 22.34 crore shares on Wednesday, translating to 94.98 percent subscription in that segment.Following market hours on Wednesday, the government decided not to exercise the green shoe option, limiting the stake sale to the base offer size.
Retail Participation Remains Weak
Retail response remained muted. Out of more than 3.79 crore shares reserved for retail investors on Thursday, bids were placed for only about 5.9 lakh shares, indicating subdued participation in the segment.Share Price Touches 52 Week Low
The government continues to hold an 86.36 percent stake in the railway sector financing company.IRFC shares closed at Rs 103.25 on the BSE, down 1.24 percent from the previous close. During intraday trading, the stock touched a 52 week low of Rs 102.50, reflecting pressure amid the stake sale process.
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