IRFC shares fall 4% to hit fresh 52-week low as govt to offload up to 4% stake via OFS

IRFC shares see profit booking in trade.

• IRFC shares hit 52-week low after govt begins 4 percent stake sale.
• Govt to raise about Rs 5,430 crore via Offer for Sale.
• OFS opens for non-retail investors Wednesday, retail on Thursday.

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Shares of Indian Railway Finance Corporation (IRFC) fell over 4 percent to hit a fresh 52-week low on Wednesday after the government announced offloading up to 4 percent stake in the company through an Offer for Sale (OFS).

The stock declined 4.22 percent to Rs 104.82 per share on the NSE. It has fallen about 6 percent in the last two sessions. The scrip opened gap-down, slipping 3.15 percent at the start of trade.

The decline came after the government said it will divest up to 4 percent stake in the state-owned firm under the Ministry of Railways via an OFS beginning Wednesday.

The floor price for the OFS has been fixed at Rs 104 per equity share, IRFC said in a regulatory filing.

At the floor price, the government is expected to raise around Rs 5,430 crore by offloading up to 4 percent stake.

Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X that the OFS for IRFC will open on Wednesday for non-retail investors, while retail investors can bid on Thursday.

"Government offers to disinvest 2% equity in the IRFC with an additional 2% as green shoe option," he said.

According to the filing, the government proposes to sell up to 26.13 crore shares, representing 2 percent of the total issued and paid-up equity share capital, with an option to additionally sell another 26.13 crore shares, constituting a further 2 percent stake.

The government currently holds 86.36 percent stake in IRFC. Following the share sale, its holding will decline to 82.36 percent.

(With inputs from PTI)

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