IRFC Stake Sale: Government’s 2% Offer Falls Short of Full Subscription

The Indian government’s attempt to sell a 2% stake in the Indian Railway Finance Corporation (IRFC) ended with a disappointing response. The two-day Offer for Sale (OFS), which concluded on February 26, 2026, failed to attract enough bids from either retail or institutional investors.

On February 24, the government proposed selling over 26.13 crore shares at a floor price of Rs 104 per share. The plan also included a “green shoe option” to sell an additional 2% if demand was high.

Muted Response from Institutional Investors

Institutional investors were offered 23.52 crore shares on Wednesday. However, bids only came in for 22.34 crore shares, reaching about 94.98% of the total reserved for this group.

Due to this lower-than-expected demand, the government decided after market hours on Wednesday not to exercise the green shoe option.

Retail Investor Participation

The response from retail investors on Thursday was also weak. Out of the 3.79 crore shares available to the general public, bids were received for only about 5.9 lakh shares. This highlights a significant lack of interest from smaller investors at the current price point.

Impact on IRFC Share Price

The government currently holds an 86.36% stake in this railway sector enterprise. Following the news of the undersubscribed OFS, IRFC shares closed at Rs 103.25 on the BSE, marking a 1.24% drop from the previous day.

During intraday trading on Thursday, the stock even touched a 52 week low of Rs 102.50, slipping below the government’s set floor price of Rs 104.

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