Govt to sell up to 4% stake in IRFC via OFS; retail bidding on Thursday - check floor price

The government will begin selling its stake in Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS) starting Wednesday, opening the window first for institutional investors.

Also read: IRFC Q3 earnings: Net profit reaches record high, check stock reaction 

Non-retail investors will be able to bid when the OFS opens on Wednesday, while retail investors will get their opportunity a day later on Thursday, according to an announcement by the Department of Investment and Public Asset Management (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 2% equity in the IRFC with an additional 2% as a green shoe option," the DIPAM Secretary said in a post on X.

The OFS involves the government selling a 2% stake in IRFC, with an additional 2% available under a greenshoe option, which allows the seller to increase the size of the offering if demand from investors is strong.

The floor price for the OFS has been set at Rs 104 per share. IRFC shares closed at Rs 109.40 on the NSE on Tuesday, down Rs 2.45 or 2.19% for the day. The floor price of Rs 104 is lower than the previous closing price.

IRFC is a dedicated financing arm of Indian Railways.