Govt to sell Up to 2% stake in IRFC via offer for sale this week

The government on Tuesday announced an offer for sale (OFS) in state-run Indian Railway Finance Corporation (IRFC), seeking to divest up to 2% of its equity stake through a base offer and a greenshoe option.

The OFS will open for non-retail investors on Wednesday and retail investors will be able to participate on Thursday, Arunish Chawla, secretary at the Department of Investment and Public Asset Management (Dipam), said in a post on X. Chawla said the government proposes to divest a 1% equity stake in the company, with an additional 1% stake available through a greenshoe option if investor demand is strong.

However, Dipam has not yet disclosed key details such as the floor price and offer size for the OFS. In recent stake sales, including those of Coal India, NHPC, NLC India, Central Bank of India and GIC Re, Dipam had included these details while announcing the offer.

IRFC, the dedicated financing arm of Indian Railways, raises resources from domestic and international markets to fund the acquisition of rolling stock and other railway infrastructure assets.

The government currently owns 84.65% of the company, or 11.06 billion shares. At Tuesday's closing price of ₹98.69 per share, its stake is valued around ₹1.09 trillion, while IRFC's total market capitalization is about ₹1.29 trillion. If the entire 2% stake is sold, the government's holding in the company will drop to 82.65%.

Mint reported on 13 May that the ministry of railways was planning to sell 2-3% minority stakes in its listed undertakings through the OFS route in FY27 as part of the government's disinvestment programme, under which it aims to raise ₹80,000 crore from disinvestment and asset monetization.

As of now, the government has raised ₹16,479.89 crore through stake sales in five public sector companies. These include:

Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.

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