IRFC shares slip to 52-week low as govt kicks off OFS stake sale
IRFC shares slip to 52-week low as govt kicks off OFS stake sale
IRFC falls over 4% as the government moves to offload a 2% stake via OFS, with a green shoe option, while retail bidding approaches.
IRFC shares tumbled more than 4% on the announcement that the government will divest a 2% equity stake in the state-run railway financier through an offer-for-sale route. There is also an additional green shoe option of 2%, which could lift the total stake sold to 4% if fully exercised. The OFS floor price was set at Rs 104 per share, roughly a 5% discount to the previous close of Rs 109.40, signaling a measured approach to the stake sale. Non-retail investors will be able to bid when the OFS opens on February 25, while retail investors can bid on February 26.
Following the news, IRFC slid to Rs 104.80, marking a 52-week low, with the company’s market capitalization dipping to around Rs 1.35 lakh crore. The stock is down nearly 30% from its 52-week high near Rs 148.90 and substantially below its all-time peak of about Rs 218 hit in July 2024.
If the green shoe option is fully exercised, the total stake sale could go up to 4%. In the December 2025 quarter, IRFC reported a net profit of Rs 1,082 crore, up about 10.5% year-on-year, with revenues of Rs 6,661 crore, up around 1.5% YoY. IRFC also said it achieved its full-year sanctions guidance of Rs 60,000 crore within the first nine months of the financial year.
As of December 31, 2025, the President of India, acting through the Ministry of Railways, owned about 86.36% of IRFC, with nearly 51.25 lakh retail investors holding around 10.57%. LIC held roughly 1.10%, while FPIs owned less than 1%. These ownership figures frame a divestment dynamically as the government weighs strategic stake reductions in the company.
