IRFC Share Sale Falls Short with Institutional Investors

The government's 2% stake sale in Indian Railway Finance Corporation (IRFC) fell short of full subscription from institutional investors, securing only 94.98% of the shares reserved. Despite setting a floor price of Rs 104 per share, bids totaled Rs 2,326 crore. Retail bidding commenced Thursday.

The Indian government's attempt to sell a 2% stake in the Indian Railway Finance Corporation Ltd (IRFC) was partially successful on Wednesday, as institutional investors did not fully subscribe. The investors placed bids covering 94.98% of the allocated 23.52 crore shares.

The projected price per share stands at Rs 104.12, with bids amounting to approximately Rs 2,326 crore. However, the follow-through from institutional investors fell short of expectations. Retail investors are set to participate in the sale the following day.

The sale involves over 26.13 crore shares, with a provision to offer an equal amount over two days if necessary. The current government ownership sits at 86.36% in this railway sector enterprise. IRFC shares ended at Rs 104.55, noting a 4.43% drop, and hitting a 52-week low of Rs 104.40 during the session.