IRFC OFS: Retail Investors Can Now Bid for ₹2,212 Crore Stake Sale

The Indian government’s massive disinvestment drive continues as the Offer for Sale (OFS) for Indian Railway Finance Corporation (IRFC) opens for retail investors today. Following a high-demand session from institutional players, this stake sale presents a unique entry point for individual investors looking to participate in one of India's premier railway financing entities.

Details of the ₹2,212 Crore Stake Sale

The Department of Investment and Public Asset Management (DIPAM) has structured this OFS to offload a significant portion of the government's holding. Initially, the government planned to sell a 1% stake (13.06 crore shares), but due to robust demand, the greenshoe option will be exercised.

This means the total offer will now include an additional 11.24 crore shares, bringing the total volume to 24.31 crore shares, representing a 1.86% stake in the company. The floor price for this sale is set at ₹91 per share, which offers a nearly 2% discount from the stock's previous closing price of ₹92.5 on the NSE.

Institutional Demand and Retail Allocation

The OFS has already demonstrated strong momentum. On Wednesday, when the non-retail portion opened, institutional investors subscribed to the offer 1.86 times. This overwhelming response necessitated the activation of the greenshoe option to meet market appetite.

For the retail segment, the allocation is specific: 2.43 crore shares are earmarked for retail investors, while a smaller pool of 25,000 shares is reserved for eligible employees. This move is part of a broader disinvestment push by the central government, which has recently seen stake sales in other major PSUs like Coal India, NHPC, and NLC India.

Stock Performance and Financial Health

Investors should note the recent volatility in IRFC’s share price. The stock tumbled more than 6% on Wednesday following the opening of the OFS and has seen an 8% decline over the past month. While the stock is down 27% in 2026 so far, its long-term track record remains impressive, delivering 185% returns over three years and 272% over five years.

From a fundamental perspective, IRFC’s Q4 results for the period ended March 2026 showed stability. The company reported a net profit of ₹1,684 crore, maintaining consistency with the ₹1,682 crore reported in the previous year's corresponding quarter. Revenue for the quarter grew by 9% year-on-year, reaching ₹7,336 crore.

Current Shareholding Pattern

As of March 31, 2026, the central government maintains a dominant position with nearly an 85% stake in IRFC. Other significant stakeholders include the Life Insurance Corporation of India (LIC), which holds a 2.54% stake, and various mutual funds holding a combined 0.27%. Retail and small shareholders collectively manage approximately 10% of the company's equity.

Key Takeaways

  • Attractive Entry Point: The OFS floor price of ₹91 provides a slight discount compared to recent market closing prices.
  • Strong Institutional Interest: The non-retail portion was oversubscribed 1.86 times, triggering the exercise of the greenshoe option.
  • Long-term Growth Profile: Despite recent short-term volatility and a price correction, IRFC has demonstrated exceptional multi-year returns exceeding 270%.