Summary:
IRFC shares fell nearly 5% after the Government of India launched an Offer for Sale (OFS) to divest up to a 2% stake in the company. The OFS floor price was set at ₹91 per share, a discount of around 7.5%-7.8% to the previous closing price, creating pressure on the stock. If fully subscribed, including the greenshoe option, the stake sale could raise over ₹2,300 crore for the government. The OFS is part of the Centre's broader FY27 disinvestment programme, which targets ₹80,000 crore through stake sales and asset monetisation. Despite reporting stable earnings and revenue growth in Q4 FY26, IRFC shares remain significantly below their 2024 peak
Shares of Indian Railway Finance Corporation (IRFC) declined nearly 5% on June 24 as the Government of India launched an Offer for Sale (OFS) to pare its stake in the railway financing company. The stock fell to an intraday low of ₹93.50 on the BSE and ₹93.60 on the NSE after the OFS opened for non-retail investors.
The Centre is selling a 1% stake in IRFC, equivalent to 13.06 crore shares, with an option to sell an additional 1% stake of 13.06 crore shares through a greenshoe option. In total, more than 26.13 crore shares, representing a 2% stake, are available under the two-day offer.
OFS Floor Price Set at ₹91 Per Share
IRFC informed stock exchanges that the OFS floor price has been fixed at ₹91 per share. The floor price represents a discount of around 7.5% to 7.79% compared with the stock's previous closing price of ₹98.69 on the BSE.
The OFS opened for institutional and non-retail investors on June 24, while retail investors will be able to place bids on June 25. At the floor price of ₹91 per share, the government could raise more than ₹2,300 crore if the entire 2% stake, including the greenshoe option, is sold.
As of the March 2026 quarter, the Government of India held an 84.65% stake in IRFC, while retail shareholders owned 9.68% of the company. IRFC currently has more than 50 lakh small retail shareholders.
Explore: Indian Railways Finance Corp Ltd (IRFC)- Share Price
Part of Government’s Ongoing Divestment Programme
The IRFC OFS marks the sixth disinvestment transaction undertaken by the Centre in FY27. Earlier, the government reduced its holdings in Central Bank of India, Coal India, NHPC, NLC India and General Insurance Corporation of India (GIC).
These transactions have generated total disinvestment proceeds of ₹16,479.89 crore so far this fiscal year. The government has exercised the greenshoe option in all OFSs launched during the year, supported by strong investor demand.
The Centre has set a disinvestment and asset monetisation target of ₹80,000 crore for FY27 and is looking to accelerate stake sales across public sector enterprises. Reports also suggest that a stake sale in LIC may be considered in the coming weeks.
IRFC’s Q4 FY26 Performance
On the operational front, IRFC reported a net profit of ₹1,684 crore for the quarter ended March 2026, compared with ₹1,682 crore in the corresponding quarter last year. Revenue increased 9% year-on-year to ₹7,336 crore from ₹6,723 crore.
Compared with the December 2025 quarter, profit after tax declined 7% from ₹1,802 crore. However, revenue rose 10% sequentially from ₹6,661 crore.
Stock Remains Under Pressure
Despite its strong position as the dedicated financing arm of Indian Railways, IRFC shares have struggled in 2026. The stock has declined 21.8% to 25.3% so far this year and remains nearly 60% below its record high of ₹229 reached in 2024.
Established in 1986 under the Ministry of Railways, IRFC finances rolling stock acquisitions, railway infrastructure projects and other capital expenditure requirements of Indian Railways. The company operates on a cost-plus financing model, providing stable cash flows and predictable earnings. With its Navratna status and a key role in funding railway expansion, IRFC continues to remain closely watched by investors despite the recent correction in its share price.
