The government launches an Offer for Sale (OFS) for Indian Railway Finance Corporation (IRFC), aiming to divest up to 2% of the company’s equity. The OFS opens first for non-retail investors on Wednesday and for retail investors on Thursday, according to DIPAM announcements reported by multiple outlets. The structure includes a 1% base offer and an additional 1% greenshoe (over-allotment) option, which gives the government flexibility to sell more shares if demand is strong. Reporting also indicates that the initial plan targets sale of 1% equity with the potential to scale to the full 2% through the over-allotment option.
The floor price for the OFS is set at ₹91 per share, as cited by several reports. Shares of IRFC fall sharply as the market reacts to the announcement and the start of bidding, with declines reported around 5% to nearly 6% in the period around the OFS opening. The stake sale is part of the broader central disinvestment programme, which has already raised funds through minority stake sales in other PSUs and banks during the current financial year. In one update, receipts are projected based on expected proceeds at the floor price.
