The Government of India has announced plans to sell up to a two per cent stake in Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS), according to the Department of Investment and Public Asset Management (DIPAM). The announcement was made via a post on social media platform X on Tuesday.
Details of the Offer for Sale
DIPAM stated that the OFS will open for non-retail investors on Wednesday, while retail investors can bid on Thursday. The government initially offers to disinvest one per cent equity in IRFC, along with an additional one per cent as a green shoe option, which can be exercised if investor demand is strong. An Offer for Sale is a mechanism through which promoters, including the government in public sector enterprises, can sell shares on the stock exchange transparently. Institutional and retail investors can bid for shares during a specified period.
Market Performance and Pricing
Shares of IRFC ended Tuesday's trading session at Rs 98.37 apiece on the BSE, down 2.53 per cent. The proposed transaction is part of the government's disinvestment programme aimed at reducing its stake in public sector enterprises while enhancing public shareholding.
About Indian Railway Finance Corporation
IRFC is a key public sector financial institution supporting the Indian Railways network. Established on December 12, 1986, it serves as the dedicated financing arm of Indian Railways, raising funds for railway infrastructure and expansion projects. The company mobilises resources from domestic and overseas capital markets to meet the financing requirements of Indian Railways. IRFC holds Navratna status and functions under the Ministry of Railways. It is also registered with the Reserve Bank of India as a Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC) and Infrastructure Finance Company.
According to DIPAM, "Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 1 per cent equity in the IRFC along with additional 1 per cent as green shoe option."
