The government's 2 per cent share sale offer in Indian Railway Finance Corporation Ltd (IRFC) failed to get full subscription on its final day of offer, with both retail and institutional investors giving a lacklustre response to the OFS.
IRFC OFS Fails to Get Full Subscription; Shares Fall 1.24%
Indian Railway Finance Corporation’s offer-for-sale did not receive full subscription, leading to a 1.24% drop in share price
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On February 24, the government proposed to sell over 26.13 crore shares or a 2 per cent stake in IRFC at a floor price of Rs 104 per share, along with a green shoe option of an equal number in the two-day OFS.
Of the 23.52 crore shares reserved for institutional investors, bids came in for 22.34 crore IRFC shares on Wednesday. The bids were 94.98 per cent of the shares offered to such investors.
After market hours on Wednesday, the government decided not to exercise the green-shoe option.
Of the over 3.79 crore shares offered to retail investors on Thursday, bids came in for about 5.9 lakh shares.
The government currently holds an 86.36 per cent stake in the railway sector enterprise.
Shares of IRFC closed at Rs 103.25, down 1.24 per cent over the previous close on BSE. The scrip had touched a 52-week low of Rs 102.50 in intraday trade on Thursday.
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