The Government of India's Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC) is open for retail investors today, June 25, 2026 — the second and final day of this two-day divestment exercise. Non-retail investors (institutional and HNI) placed their bids yesterday on June 24, with retail investors and employees now getting their window through 3:30 PM today.

This is the government's sixth divestment transaction of FY27, and it carries the familiar OFS structure: a base offer of 1% equity plus an additional 1% under a green shoe option, taking the total potential stake sale to up to 2% of IRFC's equity.

IRFC OFS Open for Retail Investors Details :-

Detail	Information
Company	Indian Railway Finance Corporation Ltd (IRFC)
OFS Type	Offer for Sale via stock exchange mechanism
Seller	Government of India (Ministry of Railways)
Base Offer	1% equity stake
Green Shoe Option	Additional 1% (exercised if demand is strong)
Total Potential Divestment	Up to 2% of IRFC equity
Floor Price	₹91 per share
Discount to Previous Close	~7.79% to BSE previous close of ₹98.37
Non-Retail Bidding Day	June 24, 2026 (T Day)
Retail Investor Bidding Day	June 25, 2026 (T+1 Day — Today)
Trading Hours	9:15 AM – 3:30 PM (IST)
Exchange	NSE and BSE
Employee Quota	Up to 25,000 shares reserved for eligible employees
BSE Scrip Code	Listed as IRFC

What Is an OFS and How Does This One Work?

An Offer for Sale (OFS) is a SEBI-prescribed stock exchange mechanism through which an existing major shareholder — in this case the Government of India — sells part of its holding in a listed company directly to investors through the exchange platform, without the company issuing any new shares.

This distinction is important: IRFC is not raising fresh capital through this transaction. The proceeds from the OFS go entirely to the government, not to IRFC's balance sheet. The company's operations, financials, and debt programme remain unaffected.

The two-day structure is standard for large OFS transactions. Non-retail investors (qualified institutional buyers and HNIs) bid on Day 1 to provide price discovery. Retail investors — defined as those placing bids worth up to ₹2 lakh — get Day 2, which is today.

The green shoe option means the government has built in flexibility: if overall demand is robust enough to absorb a 2% stake sale, the additional 1% can be triggered. If demand is softer, only the base 1% needs to be sold.

Floor Price of ₹91: A Built-In Discount

The government has fixed the floor price at ₹91 per equity share — the minimum price at which any bid can be placed.

IRFC shares closed at ₹98.37 on BSE on June 23 (the day before the OFS opened), making the ₹91 floor price a discount of approximately 7.79% to that closing price. The stock came under pressure on June 24 as OFS-related supply hit the market — falling as much as 5.13% intraday on NSE to ₹93.60, before settling at ₹93.43.

For retail investors bidding today, the floor price of ₹91 sets the lower bound. The final allotment price will be determined by the overall demand and valid bids received; if the issue is oversubscribed, allotment is on a proportionate basis at the discovered price.

Retail investors also have the option to bid "at cut-off" — accepting whatever price is ultimately discovered — which removes the risk of a bid being rejected for being set too low.

About IRFC: India's Railway Financing Backbone

Indian Railway Finance Corporation Limited was established on December 12, 1986, as the dedicated financing arm of Indian Railways. It operates under the Ministry of Railways and holds Navratna public sector enterprise status. It is also registered with the RBI as a Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC-ND-SI) and Infrastructure Finance Company.

IRFC's business model is straightforward: it raises funds from domestic and international capital markets — through taxable and tax-free bonds, bank loans, financial institution funding, and offshore borrowings — and lends those funds to Indian Railways and related entities for infrastructure creation and rolling stock acquisition.

Over its nearly four decades of operation, IRFC has financed:

• 13,764 locomotives
• 76,735 passenger coaches
• 2,65,815 wagons

This represents roughly 75% of Indian Railways' total rolling stock fleet — a figure that underlines the company's indispensable role in the country's largest transport network.

Since FY 2011-12, IRFC has also expanded into funding railway capacity enhancement projects, and projects with forward and backward linkages to the railway sector.

Government Shareholding: Before and After

Before this OFS, the Government of India held approximately 84.65% equity in IRFC. Even if the full 2% stake under this OFS is sold and the green shoe option is fully exercised, the government will still retain well over 80% ownership — making this a partial divestment that leaves strategic control firmly in government hands.

The primary objectives of this OFS are:

• Increasing public float: A larger free float improves trading liquidity and can support more efficient price discovery over time.
• Meeting minimum public shareholding norms: SEBI requires listed public sector companies to maintain a minimum public shareholding; OFS transactions are a standard tool for meeting or improving compliance with these norms.
• Generating disinvestment revenue: The proceeds go to the government's consolidated fund, contributing to the Centre's fiscal management and infrastructure spending targets.

FY27 Disinvestment Context: The Sixth Transaction This Fiscal

The IRFC OFS is the sixth divestment transaction by the government in the current financial year (FY 2026-27). Prior transactions in FY27 include:

Company	Disinvestment Proceeds
Coal India	₹5,542 crore
NHPC	₹4,357 crore
GIC (General Insurance Corporation)	₹3,090 crore
Central Bank of India	₹2,266 crore
NLC India	₹1,223 crore
Total so far (pre-IRFC)	₹16,480 crore

The government has a broader disinvestment and asset monetisation target of ₹80,000 crore for FY 2026-27, and the IRFC OFS will add to the proceeds already accumulated this fiscal.

What the Stock Market Reaction Means

A standard feature of OFS announcements is near-term stock price pressure, and IRFC followed this pattern closely — falling around 5% on June 24 as the market priced in the additional supply hitting the market at a discounted floor price.

This doesn't reflect any change in IRFC's business fundamentals. The OFS does not affect the company's ability to raise funds, its lending to Indian Railways, or its revenue and earnings trajectory. The government's commitment to railway capital expenditure — which is what ultimately drives IRFC's loan book growth — remains intact.

Post-OFS, the key metrics to track will be the final discovered price relative to the floor, the subscription level (particularly the retail day), and how the stock stabilises in the days following the close of the OFS window. If the full 2% is absorbed close to or above the floor price, it signals healthy market appetite for IRFC at current levels.

How Retail Investors Can Bid Today

Retail investors can place bids through:

• Their broker's trading platform, through the OFS bidding window available separately on NSE and BSE
• Net banking ASBA route if their broker supports it
• UPI-based application through registered intermediaries

Key points for retail bidders:

• Minimum bid: 1 share at or above ₹91 (floor price)
• Maximum application value: ₹2 lakh (above this, you're classified as non-retail)
• Bidding window closes at 3:30 PM today (June 25, 2026)
• Allotment on proportionate basis if oversubscribed
• "Cut-off price" bid option available, accepting the final discovered price

Frequently Asked Questions (FAQs)

1. What is the IRFC OFS?

It is an Offer for Sale by the Government of India to divest up to 2% equity stake in Indian Railway Finance Corporation (IRFC) through the NSE and BSE platform. The base offer is 1% equity, with an additional 1% under a green shoe option that can be exercised if demand is strong.

2. What is the floor price for the IRFC OFS?

The floor price has been fixed at ₹91 per share — the minimum price at which bids can be placed. This represents a discount of approximately 7.79% to IRFC's BSE closing price of ₹98.37 on June 23, 2026.

3. When can retail investors bid?

Retail investors can bid today, June 25, 2026 (T+1 Day), between 9:15 AM and 3:30 PM IST through their registered broker's OFS bidding window on NSE or BSE.

4. Who is eligible to bid as a retail investor?

Any individual investor placing bids worth up to ₹2 lakh in total is classified as a retail investor for this OFS. Applications above ₹2 lakh fall under the non-retail (HNI) category, which had its bidding window on June 24.

5. Will IRFC raise money from this OFS?

No. This is an Offer for Sale by the existing shareholder (the Government of India), not a fresh issue of shares by IRFC. All proceeds go to the government, not to IRFC's balance sheet. The company's financials and operations are unaffected.

6. What happens to government shareholding after this OFS?

Before the OFS, the government held approximately 84.65% in IRFC. Even if the full 2% is sold, the government will retain a majority stake of over 80%, maintaining strategic control of the company.

7. What is the green shoe option in this OFS?

The green shoe option allows the government to sell an additional 1% stake over and above the base 1% offer — but only if investor demand is strong enough to absorb the extra supply. It provides flexibility to scale up the divestment without committing to it upfront.

8. What is IRFC and what does it do?

Indian Railway Finance Corporation (IRFC) is a Navratna public sector enterprise under the Ministry of Railways, established in 1986. It serves as the dedicated financing arm of Indian Railways, raising funds from capital markets and lending them to Indian Railways for rolling stock acquisition and infrastructure development. It has financed approximately 75% of Indian Railways' total rolling stock fleet.

9. Why did the IRFC stock fall after the OFS announcement?

OFS announcements typically cause near-term stock price pressure because the market anticipates higher supply of shares being offered at a discounted floor price. IRFC fell around 5% on June 24. This is a supply-driven move and does not reflect any change in the company's underlying business or financial position.

10. Is this IRFC OFS part of a broader government disinvestment programme?

Yes. This is the sixth divestment transaction of FY 2026-27. Prior transactions this fiscal include OFS in Coal India, NHPC, GIC, Central Bank of India, and NLC India, together raising ₹16,480 crore before the IRFC OFS. The government has a disinvestment and asset monetisation target of ₹80,000 crore for FY 2026-27.