Government to Sell Up to Two Per Cent Stake in IRFC via OFS
ECONOMY & POLICY

Government to Sell Up to Two Per Cent Stake in IRFC via OFS

The Government of India has announced plans to sell up to two per cent of its stake in the Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS) on the stock exchange, the Department of Investment and Public Asset Management (DIPAM) said on the social media platform X. DIPAM indicated the sale will initially comprise one per cent of equity, with an additional one per cent included as a green shoe option that can be exercised if investor demand is strong. The OFS will open for non-retail investors on Wednesday, and retail investors will be able to place bids on Thursday.

An Offer for Sale is a mechanism through which promoters of a listed company, including the government in public sector enterprises, sell shares on the exchange in a transparent manner, allowing both institutional and retail investors to bid during a specified period. The process enables the government to divest holdings while providing wider public participation in ownership. The transaction forms part of the government's broader disinvestment programme aimed at reducing its stake in public sector enterprises and enhancing public shareholding.

Indian Railway Finance Corporation, established on 12 December 1986, serves as the dedicated financing arm of Indian Railways and is charged with raising funds for railway infrastructure and expansion projects. The company mobilises resources from both domestic and overseas capital markets to meet the financing requirements of the rail network. IRFC holds Navratna status, operates under the Ministry of Railways and is registered with the Reserve Bank of India as a Systemically Important Non-Deposit Taking Non-Banking Financial Company and Infrastructure Finance Company.

Shares of IRFC closed the trading session at Rs 98.37 apiece on the BSE, reflecting a decline of two point five three per cent on the day. The inclusion of a green shoe option is intended to enable the government to meet additional demand without altering the initial offering size. Officials presented the move as part of ongoing efforts to optimise public asset holdings while expanding equity participation among investors.

The Government of India has announced plans to sell up to two per cent of its stake in the Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS) on the stock exchange, the Department of Investment and Public Asset Management (DIPAM) said on the social media platform X. DIPAM indicated the sale will initially comprise one per cent of equity, with an additional one per cent included as a green shoe option that can be exercised if investor demand is strong. The OFS will open for non-retail investors on Wednesday, and retail investors will be able to place bids on Thursday. An Offer for Sale is a mechanism through which promoters of a listed company, including the government in public sector enterprises, sell shares on the exchange in a transparent manner, allowing both institutional and retail investors to bid during a specified period. The process enables the government to divest holdings while providing wider public participation in ownership. The transaction forms part of the government's broader disinvestment programme aimed at reducing its stake in public sector enterprises and enhancing public shareholding. Indian Railway Finance Corporation, established on 12 December 1986, serves as the dedicated financing arm of Indian Railways and is charged with raising funds for railway infrastructure and expansion projects. The company mobilises resources from both domestic and overseas capital markets to meet the financing requirements of the rail network. IRFC holds Navratna status, operates under the Ministry of Railways and is registered with the Reserve Bank of India as a Systemically Important Non-Deposit Taking Non-Banking Financial Company and Infrastructure Finance Company. Shares of IRFC closed the trading session at Rs 98.37 apiece on the BSE, reflecting a decline of two point five three per cent on the day. The inclusion of a green shoe option is intended to enable the government to meet additional demand without altering the initial offering size. Officials presented the move as part of ongoing efforts to optimise public asset holdings while expanding equity participation among investors.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code