Government to Divest Stake in Indian Railway Finance Corp
The Indian government plans to divest up to a 4% stake in the Indian Railway Finance Corporation (IRFC) via an Offer for Sale (OFS). The sale is priced at Rs 104 per share and could net approximately Rs 5,430 crore. Non-retail investors can bid starting Wednesday, with retail participation beginning Thursday.
- Country:
- India
The government has announced plans to divest up to a 4% stake in the Indian Railway Finance Corporation Ltd (IRFC) through an Offer for Sale (OFS) beginning Wednesday. The predetermined floor price is set at Rs 104 per equity share, as confirmed in a regulatory filing by the IRFC.
The planned stake sale, if fully subscribed, could generate approximately Rs 5,430 crore. According to the Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla, the sale for non-retail investors opens on Wednesday, with retail investors joining in on Thursday. The government aims to sell a base offer of 2% of IRFC shares, with the option to sell an additional 2% if needed.
Prior to the sale, the government holds an 86.36% stake in IRFC, which will decrease to 82.36% post-sale. Shares of IRFC were last trading at Rs 109.40 on the BSE, a decline of 2.19%.
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