IRFC Share Sale Faces Tepid Response from Investors

The Indian Railway Finance Corporation's (IRFC) 2% share sale struggled to gain traction among investors, with retail and institutional interest falling short. Announced at Rs 104 per share, the government's offer did not attract sufficient bids, leading to a decision against exercising the green-shoe option for additional shares.

The government's attempt to offload a 2% stake in the Indian Railway Finance Corporation Ltd (IRFC) met with a muted response from investors, as the offer failed to achieve full subscription by its final day.

Despite offering over 26.13 crore shares with a floor price set at Rs 104 per share, both retail and institutional investors showed limited interest in the two-day offering.

With institutional investors bidding for 94.98% of the reserved shares, and retail investors showing lower participation, the government opted not to activate the additional green-shoe option. IRFC shares closed at Rs 103.25, marking a slight dip in the stock's market price.