IRFC Offer for Sale: Govt to dilute 4% stake, floor price at Rs 104

The Indian government has launched an Offer for Sale (OFS) to dilute up to a 4% stake in Indian Railway Finance Corporation (IRFC). The floor price is Rs 104 per share. The OFS opens on Feb 25 for non-retail and Feb 26 for retail investors.

The Government of India has launched an Offer for Sale (OFS) for Indian Railway Finance Corporation (IRFC), aiming to dilute up to 4 per cent stake in the company, including a base offer of 2 per cent and an additional 2 per cent green shoe option, the company stated in an exchange filing.

Offer Details and Timelines

The Offer for Sale opens on February 25, for non-retail investors, while retail investors will be able to place their bids on February 26. The government currently holds an 86.36 per cent stake in the company. The floor price for the Offer has been set at Rs 104.00 per equity share, which will be the minimum price at which investors can place their bids under the OFS.

Sale Structure and Promoter Statement

Under the OFS, the government will sell up to 26,13,70,120 equity shares, representing 2 per cent of the total paid-up equity share capital of the company, as part of the base offer size. The additional 2 per cent stake may be sold under the green shoe option, depending on demand.

In an official statement, the company said, "The President of India, acting through and represented by the Ministry of Railways, Government of India, is the promoter of Indian Railway Finance Corporation Limited (the 'Promoter'). The Promoter (the 'Seller') proposes to sell up to 26,13,70,120 Equity Shares of the Company, representing 2 per cent of the total paid up equity share capital of the Company ('Base Offer Size'), on February 25, 2026 ('T day') for non-Retail Investors only and on February 26, 2026."

Mechanism and Additional Provisions

OFS most commonly refers to Offer for Sale, a stock market mechanism that allows promoters and large shareholders of listed companies to sell their existing shares directly to the public through a transparent bidding platform on the stock exchange.

Offer for Employees

Additionally, up to 25,000 equity shares of the company, equivalent to approximately 0.0002 per cent of the total issued and paid-up equity share capital, may be offered to eligible employees under the employee offer, subject to approval from the competent authority. Eligible employees may apply for equity shares amounting to up to Rs 500,000 under the employee offer, in accordance with the terms and conditions provided in the OFS guidelines.

Execution and Participation

The company further stated that the offer will be undertaken exclusively through the seller's brokers on a separate window provided by the stock exchanges for this purpose. The OFS is part of the government's stake dilution programme and will allow both institutional and retail investors to participate in the share sale, with separate bidding windows allocated for each category. (ANI)

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