IRFC OFS 2026: Govt To Sell Up To 2% Stake In Railway PSU
The government will divest up to 2% stake in IRFC through an Offer for Sale. Here's everything investors need to know about the OFS, key dates, government holdings.
IRFC OFS 2026: The government has launched an OFS in IRFC to sell up to a 2% stake, including a greenshoe option. The move is part of its disinvestment program. IRFC OFS will open for non-retail investors tomorrow, on 24 June, while retail investors can bid on 25 June
IRFC OFS 2026: On 23 June 2026, government of India announced an Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC), continuing its push to monetize holdings in public sector companies.
Under the offer, the Centre plans to sell a 1% stake in IRFC and has also retained the option to sell an additional 1% stake through a greenshoe option if investor demand remains strong. IRFC OFS will open for non-retail investors on 24 June, while retail investors can bid on 25 June.
The move comes months after the government's previous attempt to sell a 2% stake in IRFC failed to receive full institutional subscription.
As of 9:40 AM on June 24, 2026, IRFC shares had fallen nearly 5%.
As of 24 June 2026, 9.40 AM
IRFC OFS at A Glance
Here are the important details about IRFC OFS
|
Criteria |
Details |
|---|---|
|
Base Offer Size |
1% Stake |
|
Additional Greenshoe Option |
1% |
|
Total Offer Size |
Up to 2% |
|
Non-Retail Investors |
24 June 2026 |
|
Retail Investors |
25 June 2026 |
|
Government Holding Before OFS |
84.65% |
Why Government Selling a Stake In IRFC?
The stake sale is part of the government's broader disinvestment strategy.
Through OFS transactions, the government raises funds, increases public shareholding in PSUs and moves closer to meeting minimum public shareholding requirements mandated by market regulators.
The latest offer also comes as the government aims to raise ₹80,000 crore through disinvestment and asset monetisation in FY27.
Why are Investors Talking about February OFS Again?
Because the previous OFS did not receive full institutional participation.
In February 2026, the government attempted to sell a 2% stake in IRFC with a greenshoe option. Institutional investors bid for 22.34 crore shares, representing 94.98% of 23.52 crore shares reserved for them.
At an indicative price of ₹104.12 per share, bids worth around ₹2,326 crore were received.
This makes the response to the current OFS important.
How Does this Fit Into Government's Larger Disinvestment Plan?
IRFC OFS comes shortly after the successful 5% stake sale in GIC Re.
The government has already raised nearly ₹16,480 crore this fiscal through stake sales in GIC Re, Coal India, NHPC, Central Bank of India and NLC India.
With the latest IRFC offer, the Centre is looking to maintain momentum in its disinvestment programme.
Here is the full breakup of ₹16,480 crore
|
Name of Company |
% of GoI Shares Disinvested |
Receipts (₹ Crore) |
GoI Shareholding Post Disinvestment (%) |
|---|---|---|---|
|
Central Bank of India |
8.08% |
2,266.13 |
81.19% |
|
Coal India Ltd. |
2.00% |
5,542.36 |
61.13% |
|
NHPC |
6.01% |
4,357.36 |
61.39% |
|
NLC India |
2.73% |
1,223.57 |
69.47% |
|
General Insurance Corporation of India |
5.00% |
3,090.47 |
77.40% |
|
Total |
— |
16,479.89 |
— |
Source: DIPAM website
Final Words
IRFC OFS is more than just another PSU stake sale. Investor response will indicate whether the appetite for railway and infrastructure-linked PSUs remains strong despite market volatility. After the February OFS saw muted institutional participation, the success of this offer could become an important test for future government disinvestment plans.