Government To Sell Up To 2% Stake In IRFC Through OFS

The government has launched an Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC), offering to sell up to 2% of its equity stake. The sale opens for non-retail investors on 24 June, while retail investors will be able to place bids on 25 June. The OFS includes a base offer of 1% equity in the company. An additional 1% stake can also be sold using a green shoe option if investor demand remains strong.

On 23 June 2026, IRFC’s share price was down 2.21% to close the day at ₹98.67 on the National Stock Exchange(NSE). On 24 June 2026, shares continued their downward trend, and were trading at ₹93.59 was down by 5.19%.

What Is IRFC's Role In Indian Railways?

IRFC was created in 1986 as the main financing channel of Indian Railways. It is a Navratna public sector undertaking (PSU) that raises capital from both domestic and international financial markets to provide funds for construction of railway infrastructure and other expansion projects. Until now, IRFC has financed more than 13,000 locomotives, 76,000+ passenger coaches, and over 2.65 lakh wagons. These assets account for around 75% of Indian Railways' total rolling stock fleet.

Apart from rolling stock financing, the company has also been funding railway capacity expansion projects and infrastructure initiatives linked to the rail sector since 2011-12.

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Why Is The Government Selling Its Stake In IRFC?

IRFC was listed in 2021 at its issue price of ₹26 per share. The stock price jumped exponentially during 2023-24. After reaching a record high of ₹229 in 2024, it has corrected significantly. Today, it is trading at almost 57% below its peak level.

The upcoming OFS is another step in the government's plan to sell stakes in leading public sector companies. As per reports, the Centre has already raised around ₹16,000 crore through the sale of its stake in PSUs during the current financial year, including GIC, Coal India, NHPC, Central Bank of India and NLC India.

Sources:

CNBCTV18

Moneycontrol