IRFC Shares Garner Strong Interest: OFS Secures Rs 2,084 Crore

The Government of India's Offer for Sale (OFS) of Indian Railway Finance Corporation (IRFC) was met with robust participation, raising Rs 2,084 crore. The divestment strategy was part of a larger disinvestment program to reduce public sector stakes. The initiative witnessed high demand, with shares oversubscribed 1.86 times.

The Government of India successfully raised an estimated Rs 2,084 crore through the Offer for Sale (OFS) of Indian Railway Finance Corporation (IRFC) shares, evidencing strong demand from both institutional and retail investors. Announced in a statement by the Secretary of the Department of Investment and Public Asset Management (DIPAM) on Thursday, the initiative saw an enthusiastic response from retail investors.

During the OFS, which concluded with vigorous participation, a total of 22.88 crore shares were sold to minority shareholders over two days, valued at around Rs 2,084 crore. Despite the overall positive investor engagement, IRFC shares closed slightly lower by 0.79%, settling at Rs 91.77 on Thursday. Initially, the government had set forth plans to sell up to a 2% stake in IRFC, employing the OFS as a transparent mechanism for public sector enterprises to divest shares.

The government initially proposed relinquishing 1% of its equity, incorporating a green shoe option for an additional 1% if demand persisted. On the first day itself, the OFS was oversubscribed by 1.86 times, prompting the exercise of the green shoe option as announced by DIPAM. This move aligns with the larger disinvestment program and marks IRFC's role as a key financial entity under Indian Railways, with both institutional and retail investors showcasing consistent interest.