IRFC Share Price Today Falls 5% As OFS Opens Today; Check Floor Price, Other Details

IRFC Share Price Today: Shares of Indian Railway Finance Corporation Limited (IRFC) opened lower on Wednesday, June 24, as the Union Government's offer for sale (OFS) opened today for retail investors. The Centre has planned to sell up to 2% stake in IRFC.

The IRFC OFS begins today with non-retail bidding, followed by the retail investors window bidding on Thursday. For retail investors tracking IRFC OFS floor price, retail demand and other details.

IRFC Offer For Sale

The government will initially offload 1% equity in IRFC, with another 1% available through a greenshoe option if demand supports the addition sale. The IRFC OFS is part of a faster run of market-based disinvestment in listed public sector companies during the current financial year.

IRFC Offer For Sale

The IRFC OFS includes 1% stake sale of 13.06 crore shares in IRFC with an additional 1% stake via greenshoe option available. The floor price for IRFC has been set at Rs 91 per equity share. The OFS will be executed at a discount of 7.5% from its previous closing price.

About IRFC

The Ministry of Railways' Navratna PSU is a dedicated financing arm of Indian Railways that raises funds for infrastructure, rolling stock and related capital expenditure. Its business model is closely associated with the government's railway expansion plan and long-term borrowing requirements.

Latest OFS By Central Government

The government has offloaded its stakes in multiple companies under series of OFS. The Centre has raised more than Rs 16,000 crore through offerings in Coal India, Central Bank of India, NLC India, NHPC and General Insurance Corporation of India. These transactions have kept PSU counters active in the secondary market.

Offer for Sale routes are commonly used by promoters, including the government, to reduce holdings in listed companies through the stock exchange platform. Non-retail investors usually bid first, while retail investors participate on the following day. The final response often depends on the floor price, discount to market price and broader market conditions.

In several recent PSU OFSs, investor demand has been strong enough for the government to use the greenshoe option. Such an option allows the seller to offload additional shares beyond the base issue size. For investors, the key question is whether the IRFC sale is priced attractively after the stock's sharp correction from its peak.

IRFC Share Price Trend

IRFC share price opened lower on Wednesday. The stock was trading 4.95% lower at Rs 93.8 per share on BSE with a market capitalisation of Rs 1,22,713.27 crore at 9:47 am. The stock had hit an intraday high of Rs 94.28 per share and an intraday low of Rs 93.40 per share on Wednesday. The stock has declined 25.65% year to date (YTD), and around 45% in one year.