IRFC Share Price Slips Under Rs 100 for 1st Time Since January 2024; Govt Cuts Stake to 84.6%

Shares of Indian Railways Finance Corporation (IRFC) Ltd declined another 4 per cent on Monday, March 2, in line with weak market sentiment and following the conclusion of its Offer for Sale (OFS), which received a subdued response.

The stock hit an Intraday low of Rs 96.05, falling below the Rs 100 mark for the first time since January 2024. IRFC shares have now declined in four out of the last five trading sessions, extending the recent sell-off.

The Government of India, acting through the Ministry of Railways, reduced its stake in IRFC through the OFS conducted on the stock exchanges. According to a regulatory filing dated February 27, 2026, the government sold 22,40,40,829 equity shares, representing 1.71 per cent of the company’s total voting capital.

The divestment process was announced on February 24, 2026. The sale was carried out over two days — February 25, 2026 (T day), which was open for non-retail investors, and February 26, 2026 (T+1 day), which was open for retail investors, employees, and non-retail investors with un-allotted bids.

The base offer size was 2 per cent of the total paid-up equity share capital, amounting to 26,13,70,120 shares, with a green shoe option to sell an additional 2 per cent stake. Additionally, 25,000 shares, or 0.0002 per cent of the capital, were reserved for eligible employees.

Prior to the sale, the President of India held 11,28,64,37,000 shares, equivalent to an 86.36 per cent stake in the company. Following the transaction, the government’s shareholding declined to 11,06,23,96,171 shares, or 84.65 per cent of the total voting capital. The company later confirmed in a filing that the government stake now stands at 84.6 per cent, indicating that only 1.7 per cent of the planned 2 per cent base offer was successfully sold, excluding the green shoe option.

IRFC had earlier stated that the stake sale was aimed at complying with the Minimum Public Shareholding (MPS) norms. However, with the government still holding 84.6 per cent in the company, it will need to divest an additional 9.6 per cent stake to meet regulatory requirements.

The OFS saw muted participation from both non-retail and retail investors across the two days it was open last week, contributing to the pressure on the stock.

Disclaimer: The article is for informational purposes only and not investment advice.