IRFC OFS Opens for Retail Investors at Rs 91 Per Share

IRFC shares drew market attention as the government launched its Rs 2,212 crore offer for sale to retail investors today. According to the announcement, the floor price was set at Rs 91 per share. The OFS, which had already been oversubscribed by institutional investors in earlier tranches, will incorporate a greenshoe option—a mechanism that allows underwriters to sell additional shares if demand exceeds the initial offering. This retail tranche represents the government's continued effort to monetize its holdings in public sector enterprises and raise capital through the disinvestment program.

The IRFC offering is part of the broader government strategy to unlock value from state-owned companies while maintaining its policy objectives. Retail investor participation in such OFS exercises is significant as it democratizes access to PSU stocks and potentially widens the shareholder base. The institutional oversubscription prior to the retail window opening suggests strong market confidence in the asset. IRFC, a critical funding arm for Indian Railways' infrastructure and modernization projects, remains strategically important to the sector despite the disinvestment. The greenshoe option provides flexibility to adjust final allocation sizes based on demand, a common feature in large public offerings. This move aligns with the government's ongoing capital-raising initiatives across its portfolio of state enterprises.

Source: Markets-Economic Times