The shares of Indian Railway Finance Corporation (IRFC) declined 2% to Rs 90.80 on the BSE on Thursday as the government's offer for sale (OFS) to sell nearly 2% stake in the company at the floor price of Rs 91 per share opens for retail investors today.
The government launched its OFS in IRFC for non-retail investors on Wednesday, as it planned to sell a 1% stake in the company, representing 13.06 crore shares, with an option to offload an additional 1%, or another 13.06 crore shares, through the greenshoe option. The floor price of Rs 91 per share implies a discount of nearly 2% from the stock’s previous closing price of Rs 92.5 per share on NSE.
On the first day, the government’s OFS in IRFC received strong response from institutional investors on Wednesday, with the non-retail portion getting subscribed 1.86 times. Following the robust demand, the government will exercise the greenshoe option, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said.
