Shares of Indian Railway Finance Corporation (IRFC) fell nearly 6 per cent on Wednesday after the government launched an offer for sale (OFS) to divest up to a 2 per cent stake in the company at a discount to the prevailing market price.
The sharp decline in the stock came as non-retail investors began bidding in the share sale, with the floor price set at ₹91 per share, representing a 7.79 per cent discount to IRFC’s previous closing price.
The government will offer more than 26.13 crore shares, equivalent to a 2 per cent stake in IRFC, through the two-day OFS. At the floor price, the transaction is expected to fetch over ₹2,300 crore for the exchequer.
According to the Department of Investment and Public Asset Management (DIPAM), the government is divesting a 1 per cent equity stake in IRFC, with an additional 1 per cent available through a green shoe option. The OFS opened for non-retail investors on Wednesday and will be available for retail investors on Thursday.