IRFC OFS Opens for Retail Investors: Rs 2,212 Crore Stake Sale Details

The Indian government has opened its Offer for Sale (OFS) in the Indian Railway Finance Corporation (IRFC) for retail investors today. Following strong institutional interest, this disinvestment move aims to offload a significant portion of the PSU's stake to the public.

Massive Institutional Demand Triggers Greenshoe Option

The government’s disinvestment drive in IRFC has seen immediate traction from big players. On the first day of the OFS, which was reserved for non-retail investors, the portion was subscribed 1.86 times. Due to this robust demand, the Department of Investment and Public Asset Management (DIPAM) has decided to exercise the greenshoe option.

Originally, the government planned to sell a 1% stake (13.06 crore shares). However, by exercising the oversubscription option, the total offer size will increase to 24.31 crore shares, representing a 1.86% stake in the company. At the fixed floor price of Rs 91 per share, the total value of the OFS is expected to exceed Rs 2,212 crore.

Pricing and Allocation for Retail Investors

For retail investors looking to participate, the opportunity comes at a slight discount. The floor price is set at Rs 91 per share, which is approximately 2% lower than the stock's previous closing price of Rs 92.5 on the NSE.

The breakdown of the share allocation is as follows:

  • Retail Investors: 2.43 crore shares are available for the general public.
  • Employees: 25,000 shares are reserved for eligible IRFC employees.
  • Total Offer: Up to 24.31 crore shares via the expanded mandate.

Market Reaction and Stock Performance

The stock has faced recent volatility following the announcement. IRFC shares tumbled more than 6% on Wednesday after the non-retail portion opened. The stock has seen a downward trend recently, falling over 8% in the last week and down approximately 27% so far in 2026.

Despite the short-term dip, the company's long-term track record remains notable. While the shares have dropped 34% over the last year, they have delivered impressive returns of 185% over three years and 272% over a five-year horizon.

Financial Health and Shareholding Pattern

IRFC’s recent quarterly results show steady performance. For the quarter ended March 2026, the company reported a net profit of Rs 1,684 crore, nearly identical to the Rs 1,682 crore reported in the same period last year. Revenue for the quarter grew by 9% year-on-year, reaching Rs 7,336 crore.

As of March 31, 2026, the central government maintains a dominant stake of nearly 85% in IRFC. Other significant holders include the Life Insurance Corporation of India (LIC) with a 2.54% stake and various mutual funds holding a collective 0.27%.

Key Takeaways

  • OFS Details: The government is selling a 1.86% stake (approx. 24.31 crore shares) at a floor price of Rs 91 per share.
  • Institutional Interest: High demand led to the exercise of the greenshoe option, increasing the total sale value to over Rs 2,212 crore.
  • Retail Opportunity: 2.43 crore shares are allocated specifically for retail investors at a 2% discount to the previous close.