New Delhi: The Government of India has launched an Offer for Sale (OFS) for Indian Railway Finance Corporation (IRFC), aiming to divest up to 4% of its stake in the company. The offer includes a 2% base offer and an additional 2% green shoe option, according to an exchange filing.
Currently, the government holds an 86.36% stake in IRFC.
OFS Dates and Floor Price Details
The OFS will open for non-retail investors on February 25, 2026, while retail investors can place bids on February 26, 2026.
The floor price for the offer has been set at ₹104 per equity share, which will serve as the minimum bidding price for investors.
Under the base offer, the government plans to sell 26,13,70,120 equity shares, representing 2% of the company’s total paid-up equity share capital. Depending on investor demand, an additional 2% stake may be sold under the green shoe option.
Employee Offer and Participation
The company has also announced that up to 25,000 equity shares—approximately 0.0002% of the total paid-up equity share capital—may be offered to eligible employees under a separate employee offer, subject to approval.
Eligible employees can apply for equity shares worth up to ₹5,00,000 under the employee category, as per OFS guidelines.
What is an Offer for Sale (OFS)?
An OFS is a stock market mechanism that allows promoters or major shareholders of listed companies to sell their shares directly to the public through a transparent bidding process on stock exchanges.
The IRFC OFS will be conducted through a separate window provided by the stock exchange specifically for this purpose.
Part of Government’s Disinvestment Strategy
The stake sale is part of the government’s broader stake dilution and disinvestment programme. The OFS structure allows both institutional and retail investors to participate, with separate bidding windows allocated for each category.
IRFC, the dedicated financing arm of Indian Railways, plays a crucial role in funding railway infrastructure projects. The stake sale is expected to enhance public participation in the company while supporting the government’s fiscal objectives.
