IRFC shares down 8 percent as government plans stake sale

Shares of state-owned Indian Railway Finance Corp (IRFC) slide down 8 percent after news reports of government’s plan to sell its stake in the financial arm of the Indian railway through OFS (offer for sale) came out. The company's stock had fallen 9.62 percent from its 52 week high of Rs 52.50 on August 16 to Rs 47.45 at close of August 17.

On August 18, the stock has stemmed the fall, rising by 0.73 percent to Rs 48 at 9:42 am.

The government wants to trim some of its 86.36 percent stake in the company in order to meet Sebi’s minimum public shareholding (MPS) norm. According to MPS, a public listed company need to have minimum of 25 percent public float within 5 years of the company’s listing. The government will have to cut 11.36 percent of its stake to meet the criteria.

In the last 6 months, the stock has given a return of 67.89 percent.