Business
23 Jun, 2026
Govt to sell up to 2 pc in IRFC via OFS
Business To Business, New Delhi, 23rd June, 2026: The Government of India will divest up to 2 per cent stake in Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS) beginning Wednesday, as part of its disinvestment programme.
The announcement was made by Arunish Chawla, who stated that the government will initially offer 1 per cent equity in IRFC, along with an additional 1 per cent green shoe option that may be exercised depending on investor demand.
Key Details of the OFS
- Company: Indian Railway Finance Corporation (IRFC)
- Stake on offer: 1%
- Additional green shoe option: 1%
- Total potential divestment: Up to 2%
- Mode: Offer for Sale (OFS)
- Seller: Government of India
What Is a Green Shoe Option?
A green shoe option allows the seller to offer additional shares beyond the base issue size if investor demand is strong. In this case, the government can increase the sale from 1 per cent to 2 per cent of IRFC's equity.
Awaiting Floor Price
The government has not yet announced the
floor price for the OFS. The floor price will determine the minimum bid price at which investors can participate in the share sale and is expected to be disclosed before the offer opens.
Significance
IRFC is the dedicated financing arm of Indian Railways and plays a crucial role in funding railway infrastructure projects, rolling stock acquisition, and modernization initiatives.
The stake sale is part of the government's broader efforts to:
- Increase public shareholding in listed public-sector enterprises
- Enhance market liquidity
- Raise resources through disinvestment
- Improve compliance with minimum public shareholding norms
Investors will closely watch the announced floor price and subscription levels to gauge market appetite for the offering.