IRFC OFS: Govt to exercise green shoe option as shares fall 5%; retail bidding tomorrow - Here's what we know so far - Markets | Latest News Updates

IRFC OFS: Shares of Indian Railway Finance Corporation (IRFC) came under pressure on Wednesday, declining around 5 per cent as the government’s Offer for Sale (OFS) opened for non-retail investors. While the Centre is set to invoke the green shoe option to sell additional shares following robust demand.

“OFS oversubscribed 1.86 times on the first day. Retail investors and employees to bid on June 25, 2026,” he added.

This move aligns with the government’s recent trend — it has exercised the greenshoe option in every OFS launched this year, supported by healthy demand from institutions and other large investors.

OFS opens with discounted floor price

The government is offering a 1 per cent stake (13.06 crore shares) in IRFC with a floor price of Rs 91 per share — a discount of about 7.5 per cent to the previous closing price. The OFS includes a greenshoe option for an additional 1 per cent stake, taking the potential total to 2 per cent.

Shares of IRFC fell nearly 5 per cent to around Rs 93.50 on the BSE on Wednesday morning as non-retail investors began bidding. The retail portion of the OFS is scheduled to open on Thursday.

On the earnings front, IRFC reported a stable performance in the fourth quarter. The company posted a net profit of Rs 1684 crore for Q4 FY26, almost flat compared to Rs 1,682 crore in the year-ago period. Revenue grew 9 per cent YoY to Rs 7,336 crore.

However, shares have corrected sharply — down 21.8 per cent YoY and trading nearly 60 per cent below their all-time high of Rs 229 hit in 2024. Despite the decline, IRFC continues to enjoy strong retail interest with over 50 lakh small shareholders.

Indian Railway Finance Corporation serves as the dedicated financing arm of the Ministry of Railways. It plays a key role in funding the acquisition of rolling stock, railway infrastructure projects, and other capital expenditure needs of Indian Railways.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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