IRFC shares tumble 5% as OFS opens for non-retail investors. Here’s what shareholders should know

Synopsis

IRFC shares dipped 5% as the government launched an Offer for Sale, planning to sell a 1% stake at a floor price of Rs 91. This move aims to boost the stock's free float and liquidity. The sale, part of the Centre's divestment drive, follows similar offerings in other public sector undertakings. Despite a significant year-to-date fall, IRFC remains popular with a large retail investor base.

Loading...

×

Shares of Indian Railway Finance Corporation (IRFC) declined 5% to Rs 93.50 on the BSE on Wednesday as the government's offer for sale (OFS) opens for non-retail investors.

Under the OFS, the Centre plans to sell a 1% stake in the company, representing 13.06 crore shares, with an option to offload an additional 1%, or another 13.06 crore shares, through the greenshoe option.

IRFC informed exchanges that the floor price has been fixed at Rs 91 per share, which is 7.5% lower than the stock's previous closing price. The offer will open for retail investors on Thursday. As of the March quarter, the government owned 84.65% of IRFC, while retail shareholders held a 9.68% stake, according to stock exchange data.

The OFS is expected to increase the stock's free float and improve liquidity, while offering investors another opportunity to participate in one of India's largest railway financing companies.

The stake sale is part of the Centre's ongoing divestment programme and follows recent OFSs in Coal India, Central Bank of India, NLC India, NHPC, and General Insurance Corporation of India (GIC). The government has exercised the greenshoe option in every OFS launched so far this year, aided by strong investor demand.

Sensex, Nifty today: Catch all the LIVE stock market action here

On the earnings front, IRFC reported a net profit of Rs 1,684 crore for the quarter ended March 2026, largely unchanged from Rs 1,682 crore in the corresponding period a year earlier. Revenue for the quarter rose 9% year-on-year to Rs 7,336 crore from Rs 6,723 crore in the year-ago period.

On a sequential basis, profit after tax declined 7% from Rs 1,802 crore reported in the December quarter. Revenue, however, increased 10% quarter-on-quarter from Rs 6,661 crore recorded in the October-December quarter of FY26.

IRFC shares have fallen 21.8% so far this year and are trading nearly 60% below their record high of Rs 229 touched in 2024. Despite the sharp correction, the stock continues to enjoy a wide retail investor base, with more than 50 lakh small shareholders, according to the company's latest shareholding data available on the BSE.

Indian Railway Finance Corporation is the dedicated financing arm of the Ministry of Railways and plays a critical role in funding the acquisition of rolling stock, railway infrastructure projects, and other capital expenditure undertaken by Indian Railways.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

Akasa aims to be a 226-aircraft airline by 2032, IPO in 2-4 years

Crude falls, retail prices don’t. Will it be different this time?

What will the NSE IPO price be? Unlisted market deals offer clues.

Down 30% in 1 year, are AI-hit Infy, TCS still value stocks?

Stock Radar: Indian Hotel stock breaks out from falling channel resistance on weekly charts; time to buy?

1

2

3