IRFC OFS
Govt to exercise greenshoe option to sell up to 2% stake in IRFC OFS
This story was originally published at 18:27 IST on 24 June 2026
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--Divest secy: Govt to exercise green shoe option in IRFC OFS
NEW DELHI – The government will exercise the greenshoe option to sell an additional 1% in Indian Railway Finance Corp. Ltd.'s offer for sale, Divestment Secretary Arunish Chawla said Wednesday. The government had offered to sell up to 2% stake in the state-owned company through an offer for sale, including a base issue size of 1% and a greenshoe option of 1%.
The issue opened on Wednesday for non-retail investors, and retail investors and employees can bid on Thursday. "Offer for sale in Indian Railways Finance Corporation received an enthusiastic response from the investors and was oversubscribed 1.86 times on the first day," Chawla said in a post on X. The floor price for the issue has been fixed at INR 91 per share, a discount of about 8% to Tuesday's closing price.
The government holds 84.65% stake in IRFC. With the government exercising the greenshoe option. At the floor price, the government will raise about INR 24 billion by selling 2% stake in the company. This will help the government meet its ambitious miscellaneous capital receipts target of INR 800 billion for 2026-27 (Apr-Mar). So far this fiscal, the government has raised INR 164.80 billion through offer-for-sale in five state-owned companies.
On Wednesday, the company's shares closed at INR 92.50 on the National Stock Exchange, down 6.3% from the previous close. For the March quarter, IRFC reported a net profit of INR 16.84 billion on revenues of INR 73.36 billion. End
Reported by Priyasmita Dutta
Edited by Saji George Titus
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