IRFC OFS 2026: Government Opens 4% Stake Sale at ₹104 Floor Price to Raise ₹5,430 Crore; Shares Hit 52-Week Low
The Government of India has launched an Offer for Sale (OFS) to sell up to 4% of its stake in Indian Railway Finance Corporation (IRFC), the dedicated financing arm of Indian Railways. The stake sale is expected to raise around ₹5,430 crore and comes at a time when IRFC shares are under pressure in the market.
The move is part of the government’s broader disinvestment strategy while retaining majority ownership in the company.
IRFC OFS Timeline: Key Dates, Share Details and Floor Price
The OFS opened on Wednesday, 25 February 2026, for non-retail investors, including institutional buyers and high-net-worth individuals. Retail investors and eligible employees can place bids on Thursday, 26 February 2026.
The base offer consists of 26.13 crore shares, representing 2% of IRFC’s total equity. The government also has a green shoe option to sell an additional 2% stake if demand remains strong, taking the total offer size to 4%.
The floor price has been set at ₹104 per share, slightly below recent market levels, to attract buyers.
Before the sale, the government held 86.36% of IRFC. If the full 4% stake is sold, its holding will reduce to 82.36%, with the company continuing under majority government control.
IRFC Share Price Falls to 52-Week Low
IRFC shares declined ahead of and during the OFS launch. The stock fell more than 4%, touching a fresh 52-week low of ₹104.82 on the NSE. Over two trading sessions, the stock slipped nearly 6% as news of the stake sale weighed on investor sentiment.
Such declines are common during large stake sales, as the additional supply of shares can temporarily pressure prices. The discounted floor price has also added to short-term volatility.
As of now, bidding for non-retail investors is underway. Final subscription data will become clearer after the retail portion closes.
Why the Government Is Selling IRFC Stake
The stake sale aligns with the government’s plan to gradually reduce its shareholding in public sector companies while maintaining control. The funds raised will support broader fiscal and capital allocation goals.
IRFC plays a crucial role in financing railway infrastructure, rolling stock and expansion projects. With Indian Railways continuing to invest heavily in infrastructure upgrades, IRFC remains central to funding these initiatives.
For retail investors, the OFS offers an opportunity to buy shares at a lower price. However, short-term volatility may persist until the market absorbs the additional supply.
The OFS will conclude shortly, and subscription levels will determine the next direction for the stock. Investors are advised to track official updates from stock exchanges for the latest developments.
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