IRFC Share Price Falls Nearly 5% As Government Launches OFS At 7.5% Discount

IRFC share price came under pressure on Wednesday, June 24, with the stock falling nearly 5% in early trade after the Government of India launched an Offer for Sale (OFS) to divest up to a 2% stake in the company.

The Centre has put up 1% equity stake, equivalent to 13.06 crore shares, for sale and has retained an option to sell an additional 1% stake through the greenshoe option. The OFS floor price has been fixed at ₹91 per share, representing a discount of around 7.5% to IRFC’s previous closing price.

The OFS opened for non-retail investors on June 24, while retail investors will be able to participate on June 25.

Government Continues Divestment Push

The IRFC OFS is part of the government's broader divestment strategy aimed at meeting its disinvestment target of ₹80,000 crore for FY27. The Centre has already undertaken stake sales in several public sector companies, including Coal India, Central Bank of India, NLC India, NHPC, and General Insurance Corporation of India (GIC).

Notably, the government has exercised the greenshoe option in all OFS issues launched so far this year, reflecting strong investor demand for public sector stocks.

At the end of the March 2026 quarter, the Government of India held an 84.65% stake in IRFC, while retail shareholders collectively owned 9.68% of the company.

IRFC Share Price Under Pressure

Following the OFS announcement, the IRFC share price declined 4.7% to ₹94 in early trading. The stock has witnessed significant correction over the past year, falling 25.3% in 2026 so far and nearly 60% from its all-time high of ₹229 reached in 2024.

Despite the correction, IRFC remains one of the most widely held public sector stocks in India, with more than 50 lakh retail shareholders as per the latest shareholding data.

Conclusion 

Investors with a demat account will closely monitor subscription levels in the OFS. Strong demand could signal continued confidence in the railway financing major despite the recent decline in its share price.

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