New Delhi, Feb 24 (UNI) The union government will launch an Offer for Sale (OFS) of a 2 per cent stake in Indian Railway Finance Corporation (IRFC) on Wednesday for non-retail investors, with retail investors allowed to bid on Thursday, according to a post by the Secretary of the Department of Investment and Public Asset Management (DIPAM) on X.
“Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 2% equity in the IRFC with an additional 2% as green shoe option,” the DIPAM Secretary said.
The OFS includes a base offer of 2 per cent equity, along with a green shoe option of an additional 2 per cent stake, which can be exercised depending on investor demand.
Indian Railway Finance Corporation is the dedicated financing arm of Indian Railways, primarily responsible for raising funds from domestic and international markets to finance railway infrastructure projects. Established in 1986, IRFC plays a critical role in mobilising resources for rolling stock acquisition and project expansion.
The proposed stake sale is part of the government’s broader disinvestment and asset monetisation strategy aimed at improving public sector efficiency, enhancing market discipline, and raising non-tax revenue. DIPAM, under the Ministry of Finance, oversees such stake sales in central public sector enterprises (CPSEs).
An Offer for Sale mechanism allows the government to dilute its stake in listed public sector companies through the stock exchanges in a transparent manner. The green shoe option provides flexibility to retain the right to sell additional shares in case of oversubscription.
Market analysts say investor response to the IRFC OFS will be closely watched, given the company’s strategic role in financing railway expansion and its steady revenue model backed by long-term leasing arrangements with Indian Railways.
