The government will divest 4% stake in IRFC through OFS from Wednesday and set the floor price at Rs 104 per share

The government will sell up to 4% stake in the Indian Railway Finance Corporation (IRFC) through an offer for sale (OFS) open to non-retail investors on Wednesday, while retail investors can make bids on Thursday.The government has offered to divest 2% stake in IRFC, with another 2% as green shoe option. Under the OFS, over 26.13 crore shares of the company will be waived with an option to sell another 26.13 crore shares under the over-subscription option.

The floor price for the issue has been set at Rs 104 per share, taking the OFS size to Rs 5,436 crore through the sale of 4% equity.

The floor price is at a discount of 5% to today’s closing price of Rs 109.44, 2.2% lower than Monday’s closing price.

IRFC is the dedicated financing arm of Indian Railways and the company is charged with mobilizing funds from domestic and foreign markets to meet the preponderance of Indian Railways’ additional budgetary requirements. It is a Navratna public sector undertaking under the administrative control of the Ministry of Railways.

IRFC Stock Price Performance

The stock has been a major laggard and has fallen 12% in a year, while Nifty has risen 11% in the same time. It is currently trading below the 50-day and 200-day simple moving averages (SMAs) of Rs 118 and Rs 126 respectively.

IRFC reported its highest ever quarterly profit for the third quarter in a row, supported by steady loan growth and improving margins. For the quarter ended December 2025, IRFC posted a profit after tax of Rs 1,802 crore, marking an increase of 11% year-on-year (year-on-year) and the highest quarterly profit in the company’s history.

Net interest margins improved by more than 8% year-on-year during the quarter, helped by value-add payouts in diversified segments and disciplined liability management. Total income stood at Rs 6,719 crore for the quarter, while income for the nine-month period stood at Rs 20,009 crore.