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.

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