Bullsonfire
IRFC OFS Opens as Govt Plans 2% Stake Sale at ₹104, Aims to Raise ₹5,430 Crore; Shares Fall Over 4%
The IRFC OFS opened on February 25, 2026, with the Government of India planning to offload up to a 2% stake in Indian Railway Finance Corporation at a floor price of ₹104 per share. The offer aims to raise around ₹5,430 crore, though initial response remained subdued as shares fell over 4% in the share market today. The divestment comes amid cautious sentiment in the indian stock market and weakness across PSU counters in the stock market today open.
Shares of Indian Railway Finance Corporation were trading sharply lower on Wednesday, reflecting pressure in the share market today rate after the government announced the Offer for Sale (OFS). The stock declined as much as 4.22% to hit an intraday low of ₹104.82 on the NSE during the stock market today session.
The government fixed the floor price for the IRFC OFS at ₹104 per equity share, according to a regulatory filing. At this price, the Centre would raise approximately ₹5,430 crore if the full base offer size is subscribed.
The President of India, acting through the Ministry of Railways, proposed to sell up to 26.13 crore equity shares, representing 2% of the total paid-up equity share capital. Earlier, there was an option to additionally sell another 2% under a green shoe option. However, due to under-subscription of 1.18 crore shares on T day, the oversubscription option was not exercised.
Out of the total offer size:
- 14.52% (3.79 crore shares) are reserved for retail investors on T+1 day.
- 25,000 shares are reserved for employees.
The government currently holds an 86.36% stake in IRFC. After completion of the IRFC OFS, the stake will reduce to 84.36%.
🔹 IRFC Q3 FY26 Earnings Performance
Despite the IRFC OFS pressure, the company recently reported solid quarterly numbers.
For Q3 FY26:
- Net profit rose 10.51% to ₹1,802 crore, compared to ₹1,631 crore in the year-ago period.
- Total income marginally declined to ₹6,719 crore from ₹6,766.39 crore.
- Total expenses reduced to ₹4,917.04 crore from ₹5,135.7 crore.
The company’s net worth increased to ₹52,046 crore as of December 2025, compared to ₹47,443 crore in the corresponding quarter last fiscal.
IRFC achieved its annual sanction guidance of ₹60,000 crore within nine months. Assets Under Management (AUM) reached a record ₹4.75 lakh crore as of December 31, 2025.
Indian Railway Finance Corporation was incorporated on December 12, 1986, as the dedicated financing arm of Indian Railways. Over more than three decades, IRFC has played a key role in funding railway infrastructure expansion by mobilising resources from domestic and international capital markets.
It holds Navratna PSU status and is registered as a systemically important non-deposit-taking NBFC (NBFC-ND-SI) and Infrastructure Finance Company (NBFC-IFC) with the RBI.
The government has been gradually reducing stake in public sector undertakings as part of its broader disinvestment strategy. Similar OFS exercises in the past have caused temporary corrections in the share market, especially when offered at a discount to prevailing prices.
🔹 Implications & What Happens Next
The immediate impact of the IRFC OFS is visible in price correction and increased trading volumes in the share market today. Analysts suggest that once the supply overhang clears and allotments are finalised, price stabilization may occur.
Key things to watch in the stock market india:
- Retail subscription levels on T+1 day.
- Institutional participation.
- Broader movement in nifty and sensex.
- Global cues affecting india stock market sentiment.
If subscription remains healthy, it may signal strong institutional confidence in IRFC’s long-term business model. However, weak participation could keep the stock under pressure in the near term.
Looking ahead, IRFC’s performance will depend on:
