Govt to Sell Up to 2% in IRFC at ₹91 Per Share

1. The government will disinvest up to 2% in IRFC through an offer for sale.

2. The floor price is ₹91 per share, below Tuesday’s closing price.

3. The stake sale could raise over ₹2,300 crore.

The government will sell up to 2% stake in Indian Railway Finance Corporation (IRFC) at a floor price of ₹91 per share starting Wednesday.

Over 26.13 crore shares representing 2% stake in IRFC will be put on offer in the two-day share sale. At the floor price, the stake sale will fetch over ₹2,300 crore to the exchequer.

The floor price of ₹91 per share is at a discount of 7.79% over Tuesday's closing price on BSE. In a post on X, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the government offers to disinvest 1% equity in the IRFC along with an additional 1% as a green shoe option.

The OFS will open for retail investors on Thursday.

Shares of IRFC closed at ₹98.69 on Tuesday, down 2.16% over the previous close on BSE.

"Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday," the X post said.

In the current fiscal, the government has sold minority stakes in five central public sector enterprises and banks and insurance companies, taking the total disinvestment proceeds to ₹16,480 crore so far.

This includes ₹5,542 crore from Coal India, ₹4,357 crore from NHPC, ₹3,090 crore from GIC, ₹2,266 crore from Central Bank of India and ₹1,223 crore from NLC India.