Government Set to Unload 4% IRFC Stake via Offer for Sale

The Indian government plans to divest up to 4% of its shareholding in the Indian Railway Finance Corporation through an Offer for Sale, aiming to raise about Rs 5,400 crore. Institutional investors can participate starting Wednesday, followed by retail investors on Thursday.

The Indian government is preparing to offload a 4% stake in the Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS) mechanism. This move, set at a floor price of Rs 104 per share, aims to generate approximately Rs 5,400 crore for the state's coffers.

The OFS will be available to institutional investors beginning Wednesday, with retail investors getting their chance on Thursday. This strategic divestment involves over 26.13 crore shares, representing a 2% stake, along with a green shoe option for an equal amount.

As of the latest stock market activity, shares of IRFC concluded at Rs 109.40, having dropped by 2.19% from the previous day on the BSE, despite the upcoming sale.

(With inputs from agencies.)