DELHI (Metro Rail News): The central government has announced plans to sell up to a 2% stake in Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS). The move could help the government raise more than Rs 2300 crore and support its disinvestment programme for the financial year 2026-27.
The Department of Investment and Public Asset Management (DIPAM) stated that the government will first sell a 1% stake in IRFC. If investors demanded more then it can sell an additional 1% through a greenshoe option. The offer was available for non-retail investors on Wednesday and for retail investors on Thursday (Today). DIPAM Secretary Arunish Chawla shared the details on social media platform X. He said the government is offering 1% equity in IRFC along with an additional 1% greenshoe option.
Key details of the 0ffer
| Stake on offer | Up to 2% |
| Initial sale | 1% |
| Additional greenshoe option | 1% |
| Total shares on offer | 26.13 crore |
| Minimum price | Rs 91 per share |
| Expected proceeds | More than Rs 2,300 crore |
The minimum price is about 7.8%, which is lower than IRFC’s closing price of Rs 98.37 on the (Bombay Stock Exchange) BSE on Tuesday. IRFC shares closed 2.53% lower ahead of the announcement.
Part of Government’s FY27 plan
The stake sale is part of the government’s efforts to raise non-tax revenue and increase public shareholding in public sector companies. In the Union Budget for FY27, the Centre set a target of Rs 80,000 crore through disinvestment and asset monetization. In the starting of this month, the government completed a 5% stake sale in General Insurance Corporation of India (GIC Re), which received strong interest from investors. Official figures show the government has already raised around Rs 16,480 crore through minority stake sales in public sector enterprises, banks, and insurance companies during this financial year.
Previous attempt to sell IRFC shares
Earlier this year, the government attempted to sell a larger stake in IRFC. In February, it planned to sell up to 4% of the company but ended up selling only 1.71%. After that transaction, the government’s stake in IRFC stood at 84.65%.
About IRFC
IRFC is a Navratna public sector company under the Ministry of Railways. The company began operations in 1986 and serves as the primary financing arm of Indian Railways. It raises funds from domestic and international markets to finance railway infrastructure projects, purchase rolling stock, and support network expansion. IRFC also holds registration with the Reserve Bank of India as a systemically important non-deposit-taking non-banking financial company (NBFC) and infrastructure finance company.
Also Read: DMRC initiates work at Central Secretariat for the Central Vista Corridor