Public Market

Secondary Issues

Indian Railway Finance Corporation’s OFS gets 85% subscription

Business Standard  

The government-initiated offer for sale (OFS) of the publicly listed PSU Indian Railway Finance Corporation (IRFC) failed to get full subscription. The institutional segment of the OFS received bids for 223 million shares, which was below the total offer size of 522.7 million shares. The base issue size of 261 million shares was subscribed 85%.The government initially planned to sell a 4% stake in IRFC at a floor price of INR 104 per share. This was revised to a 2% stake, or over 261.3 million shares, with a greenshoe option for an equal number.IRFC later announced that the government decided not to exercise the oversubscription or greenshoe option.IRFC operates as the dedicated market borrowing and financing arm of the Indian Railways and holds Navratna status, falling under the administrative control of the Ministry of Railways. The government's stake reduction is aimed at meeting regulatory compliance requirements rather than raising funds for IRFC's business expansion or new initiatives.

For FY25, Indian Railway Finance had reported about INR 27,152 Cr in Operating Income and about INR 6,502 Cr in PAT.