Investors place bids worth over ₹1,900 crore as government exercises greenshoe option in stake sale.
Key Highlights
- IRFC OFS institutional portion subscribed 1.86 times.
- Investors placed bids for over 21.87 crore shares.
- Total institutional bids exceeded ₹1,900 crore.
- Government is selling up to 2% stake in IRFC.
- Floor price fixed at ₹91 per share.
- Government exercised the greenshoe option after strong demand.
- Retail investors and employees can bid on June 25.
- IRFC shares closed 6.24% lower at ₹92.53 on BSE.
- Government has raised ₹16,480 crore through disinvestment so far this fiscal year.
New Delhi, June 24, 2026: The government’s offer for sale (OFS) in Indian Railway Finance Corporation (IRFC) received a strong response from institutional investors on Wednesday, with the category reserved for non-retail participants being subscribed 1.86 times.
According to stock exchange data, institutional investors placed bids for more than 21.87 crore shares, against the 11.76 crore shares reserved for them. Based on the indicative price of ₹91.10 per share, the bids were valued at over ₹1,900 crore.
Government Selling Up to 2% Stake
The government is divesting up to 2% stake in IRFC through the OFS, comprising 26.13 crore shares, at a floor price of ₹91 per share. The issue also includes a greenshoe option for an additional 1% stake.
Following the robust demand from institutional investors, DIPAM Secretary Arunish Chawla announced that the government has decided to exercise the greenshoe option.
Retail Investors to Bid on June 25
After the successful institutional bidding phase, retail investors and eligible employees will be able to participate in the OFS on June 25, 2026.
The floor price of ₹91 per share was set at a discount of approximately 7.8% compared to IRFC’s previous closing price, making the offering attractive to investors.
IRFC Shares End Lower
Despite strong participation in the OFS, IRFC shares ended the trading session lower. The stock closed 6.24% down at ₹92.53 on the BSE on Wednesday.
Market participants often witness temporary pressure on stock prices during large stake sales due to increased supply in the market.
Disinvestment Drive Gains Momentum
With the IRFC stake sale, the government’s disinvestment program continues to gather pace in FY2026-27.
So far this fiscal year, the government has raised approximately ₹16,480 crore through stake sales in public sector enterprises, banks, and insurance companies, including:
- Coal India Limited – ₹5,542 crore
- NHPC Limited – ₹4,357 crore
- General Insurance Corporation of India – ₹3,090 crore
- Central Bank of India – ₹2,266 crore
- NLC India Limited – ₹1,223 crore
The strong response to the IRFC OFS highlights continued investor appetite for public sector stocks and government disinvestment offerings.
:
