The Government of India has decided not to exercise the oversubscription option in the Offer for Sale (OFS) of shares in Indian Railway Finance Corporation(IRFC), limiting the stake sale to the base 2% offer.The initial plan was to divest a 2% equity stake in IRFC through the OFS, with an additional 2% greenshoe option that could have taken the total sale to 4%. However, in a communication to the stock exchanges dated February 25, the Ministry of Railways, acting on behalf of the President of India as promoter, said it would not exercise the oversubscription option of 26,13,70,120 equity shares, representing 2% of the company’s paid-up equity share capital.
As a result, the OFS will remain restricted to the base offer size of 2%.
The floor price for the OFS has been set at ₹104 per share. The offer opened for non-retail investors on February 25, while retail investors can bid on February 26.Also read: IRFC OFS opens today; Govt to divest 2% stake — check floor price
As of December 31, the Government of India held an 86.36% stake in IRFC. The company was listed in January 2021 at an IPO price of ₹26 per share and has touched an all-time high of ₹229.
The stake sale forms part of the Centre’s broader divestment and minimum public shareholding compliance strategy.
IRFC shares fell another 5% to ₹104.43 on the NSE on February 25.
First Published: Feb 25, 2026 7:32 PM IS
