Indian Railway Finance Corporation Shares in Focus as Government Plans 2% OFS at ₹104 Floor Price

Shares of Indian Railway Finance Corporation are set to remain in focus on Wednesday after the government announced plans to divest a 2 percent equity stake through an Offer for Sale, with an additional 2 percent green shoe option.

Government to Divest Up to 4% Stake via Offer for Sale​

The Secretary of the Department of Investment and Public Asset Management confirmed that the stake sale will be conducted through an Offer for Sale mechanism. The floor price for the issue has been fixed at ₹104 per share.

The Offer for Sale for non retail investors will open on February 25, while retail investors can place bids on February 26. If the green shoe option is fully exercised, the total divestment could go up to 4 percent of the company’s equity.

The move forms part of the government’s broader divestment strategy and comes amid stable operational performance by the rail financing arm.

IRFC Share Price Movement Ahead of OFS​

Ahead of the announcement, IRFC shares closed at ₹109.40 on the NSE on Tuesday, February 24, marking a decline of ₹2.45 or 2.19 percent for the day.

With the floor price set at ₹104 per share, market participants will closely track subscription levels and pricing dynamics during the two day Offer for Sale window.

IRFC Achieves Full Year Sanctions Target Early​

The stake sale follows a recent operational update from the company. In January, IRFC announced that it had achieved its full year sanctions target of ₹60,000 crore within the first nine months of the financial year. The update was released alongside its December quarter results.

This early achievement signals sustained demand for financing support within the railway ecosystem.

Q3 Results: Record Profit, Revenue Moderation​

For the December quarter, IRFC reported its highest ever quarterly net profit of ₹1,802 crore, reflecting a year on year growth of 10.5 percent.

However, revenue moderated 1.5 percent to ₹6,661 crore from ₹6,763 crore in the corresponding quarter last year. The decline was attributed to a one year extension of a moratorium granted by the Ministry of Railways on a project lease agreement, which affected revenue recognition during the period.

Disbursement Target on Track, AUM at Record High​

Chairman and Managing Director Manoj Kumar Dubey stated that the company’s ₹30,000 crore disbursement target remains on track, with nearly three fourths already disbursed by the end of the third quarter.

Assets under management rose to a record ₹4.75 lakh crore, while the company continued to maintain a zero non performing asset status.

With the government’s stake sale now scheduled and operational metrics remaining firm, IRFC is likely to attract heightened investor attention in the upcoming trading sessions.