Wed Feb 25 04:10:00 UTC 2026: ### Government Offloads 4% Stake in IRFC via OFS, Stock Price Dips
The Story:
The Indian government has initiated an Offer for Sale (OFS) to divest up to a 4% stake in the Indian Railway Finance Corporation (IRFC), aiming to raise approximately ₹5,430 crore. The OFS, commencing on February 25, 2026, is set with a floor price of ₹104.00 per equity share. Non-retail investors can bid first, followed by retail investors on Thursday. The move led to a decline in IRFC’s stock price, dropping as much as 4.22% on the NSE.
Key Points:
- The government is divesting up to a 4% stake in IRFC through an OFS.
- The floor price for the OFS is fixed at ₹104.00 per equity share.
- The government aims to raise approximately ₹5,430 crore from the stake sale.
- The OFS includes a 2% base offer with an additional 2% as a green shoe option.
- Post the share sale, the government’s stake in IRFC will reduce from 86.36% to 82.36%.
- IRFC reported a 10.51% increase in net profit for Q3 2025, reaching ₹1,802 crore.
Key Takeaways:
- The government is actively pursuing its disinvestment agenda.
- Market reaction to the OFS was initially negative, as reflected in the stock price decline.
- IRFC’s financial performance remains robust, despite the marginal decrease in total income.
- The OFS provides an opportunity for investors to participate in the growth of a key railway financing entity.
First Piper 