Low PE Railway PSU In Focus As Government Increases OFS Size To 1.86% Stake; Check Key Details

On Thursday, Indian benchmark indices opened higher, with the Nifty 50 rising 152.55 points, or 0.63 per cent, to 24,174.20. Despite the positive market sentiment, Indian Railway Finance Corporation (IRFC) share price traded 0.70 per cent lower at Rs 91.85 during the session.

Government Increases OFS Size

The Government of India, acting through the Ministry of Railways, has exercised the oversubscription option in the ongoing Offer for Sale (OFS) of Indian Railway Finance Corporation Limited (IRFC). With this move, the total offer size has increased from the previously announced 13,06,85,060 equity shares (1 per cent stake) to 24,30,87,100 equity shares, representing 1.86 per cent of the company's total paid-up equity share capital.

The OFS is being conducted through the stock exchange mechanism in accordance with the applicable SEBI regulations.

An additional 0.86 per cent Stake Added

Initially, the Government had proposed to divest 1 per cent of its stake in IRFC through the sale of 13.07 crore equity shares. It has now exercised the oversubscription option by adding 11,24,02,040 equity shares, equivalent to an additional 0.86 per cent stake in the company.

Following the exercise of the oversubscription option, the total OFS size now stands at 24.31 crore equity shares, or 1.86 per cent of IRFC's paid-up equity share capital.
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Retail Investors' Allocation

Out of the total offer size, 2,43,08,711 equity shares, representing 10 per cent of the offer, have been reserved for retail investors on June 25, 2026, subject to the receipt of valid bids.

In addition, 25,000 equity shares have been reserved for eligible employees as part of the Offer for Sale.

About Indian Railway Finance Corporation

Indian Railway Finance Corporation Limited (IRFC) is a Government of India-owned non-banking financial company and the dedicated financing arm of Indian Railways. Incorporated in 1986, the company finances the acquisition of rolling stock, railway infrastructure assets and other projects related to the Indian Railways ecosystem.

IRFC was granted Navratna status in 2025, providing the company with greater operational autonomy to expand its financing activities beyond its traditional railway financing business.

What are your views on the Government increasing the OFS size in IRFC? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and should not be construed as investment advice.