IRFC Cancels Green Shoe Option Due to Incomplete Subscription in OFS

Indian Railway Finance Corporation (IRFC) Stake Sale Limited to 2% Offer

Key Figures:

• 2%: equity stake in IRFC being divested through the Offer for Sale (OFS)
• 26,13,70,120: number of equity shares being sold
• Rs 104: floor price for the OFS
• 86.36%: government's stake in IRFC as of December 31
• Rs 229: IRFC's all-time high share price
• Rs 104.43: IRFC's share price on February 25
• Rs 2,326 crore: institutional bids worth at an indicative price of Rs 104.12 per share

Stake Sale Details

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The Government of India has decided not to exercise the oversubscription option in the Offer for Sale (OFS) of shares in Indian Railway Finance Corporation (IRFC). As a result, the OFS will remain restricted to the base offer size of 2%. The floor price for the OFS has been set at Rs 104 per share.

The offer opened for non-retail investors on February 25, while retail investors can bid on February 26. Institutional investors showed strong interest on the first day, placing bids for over 22.34 crore shares — about 94.98% of the 23.52 crore shares reserved for them. At an indicative price of Rs 104.12 per share, institutional bids were worth roughly Rs 2,326 crore.

Background and Context

IRFC was listed in January 2021 at an IPO price of Rs 26 per share. As of December 31, the government held an 86.36% stake in IRFC. The company has touched an all-time high of Rs 229. The stake sale is part of the Centre's broader divestment plan and its strategy to meet minimum public shareholding norms.

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