Subdued Investor Response to IRFC Share Sale

The government's 2% share sale in Indian Railway Finance Corporation Ltd (IRFC) saw lukewarm interest from institutional investors. With bids for 94.98% of the offered shares, the sale fell short of full subscription. Retail investors are set to bid next. IRFC shares closed down 4.43% on BSE.

The government's attempt to divest a 2% stake in the Indian Railway Finance Corporation Ltd (IRFC) did not receive enthusiastic backing from institutional investors on Wednesday. The share sale resulted in bids covering 94.98% of the over 23.52 crore shares available, falling short of full subscription.

By the close of market hours at 3:30 PM, institutional investors had placed bids for over 22.34 crore IRFC shares, translating to about Rs 2,326 crore at an indicative price of Rs 104.12 apiece. The shares were being watched carefully as retail investors were scheduled to bid the following day.

IRFC shares closed at Rs 104.55 on the BSE, marking a 4.43% decline from the previous close. The government's proposal includes selling more than 26.13 crore IRFC shares, with a floor price set at Rs 104 each and a green shoe option for an equivalent additional stake. The government currently owns an 86.36% stake in this railway sector Public Sector Undertaking (PSU).

(With inputs from agencies.)