The government will launch its offer for sale (OFS) in Indian Railway Finance Corporation (IRFC) on Wednesday, opening the issue for non-retail investors as part of its ongoing disinvestment programme. Retail investors will be able to bid on Thursday.
The Centre plans to sell up to 1% of its equity stake in IRFC through the OFS, with an option to sell an additional 1% under the greenshoe option in case of strong demand. The transaction could help the government further improve public shareholding in the state-owned railway financier while raising resources through the capital markets.
The floor price and other issue details are expected to be announced ahead of the OFS launch. The government's stake in IRFC currently stands at around 86.4%.
The OFS route allows promoters to sell shares directly on the stock exchanges through a transparent bidding process. Institutional investors will participate on the first day, while retail investors can place bids on the second day, typically with an option to apply at or above the cut-off price.
Part of Centre's disinvestment strategy
The share sale forms part of the government's broader strategy to gradually reduce its holdings in listed public sector enterprises while improving liquidity and ensuring compliance with Sebi's minimum public shareholding norms.
IRFC has been one of the better-performing railway public sector stocks in recent years, benefiting from strong investor interest in railway infrastructure and government-led capital expenditure.
About IRFC
Indian Railway Finance Corporation is the dedicated financing arm of the Ministry of Railways and plays a critical role in funding the acquisition of rolling stock, railway infrastructure projects and other capital expenditure undertaken by Indian Railways.
The OFS is expected to increase the stock's free float and improve liquidity while offering investors another opportunity to participate in one of India's largest railway financing companies.
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