IRFC OFS: Government to Sell 2% Stake, Floor Price Set at Rs 91
The Indian government has started a big share sale in IRFC. This IRFC OFS lets the government sell up to 2% of the company. The floor price is set at Rs 91 per share. An OFS, or Offer for Sale, is a way for a large shareholder to sell shares straight through the stock market. Here the seller is the government itself. The sale opened on June 24, 2026, and gives everyday investors a chance to buy IRFC shares at a small discount.
What is happening with IRFC shares
IRFC is short for Indian Railway Finance Corporation. It is a government-owned company. Its job is simple to explain. It lends money to Indian Railways so the railways can buy trains, build tracks, and run projects. In return, IRFC earns interest. Because it backs the railways, many small investors like to own a piece of it.
Now the government wants to sell a small slice of its stake. A stake just means the share of ownership someone holds in a company. The government is using an OFS to do this. In an OFS, the shares are offered on the stock exchange over one or two days. Buyers place bids, and shares go to those who bid at or above the floor price.
The numbers: floor price and discount
The floor price is Rs 91 per share. A floor price is the lowest price at which you are allowed to bid. You can bid higher, but not lower. This floor price of Rs 91 is about 7.49% below the previous closing price of Rs 98.37. So buyers are getting the shares cheaper than the market price on the day before the sale. That small saving is the main reason an OFS draws interest.
The government is selling shares in two parts. The base offer is 13,06,85,060 shares, which is 1% of the company. If buyers want more than that, the government can sell another 1%. This extra portion is called the oversubscription option. Oversubscription means demand is higher than the shares first offered. In total, the government may sell up to 2%, or about 26,13,70,120 shares.
| Item | Detail |
|---|---|
| Floor price | Rs 91 per share |
| Previous closing price | Rs 98.37 |
| Discount to close | About 7.49% |
| Base offer size | 13,06,85,060 shares (1% of equity) |
| Maximum stake sold | Up to 2% (about 26,13,70,120 shares) |
| Oversubscription option | Extra 1% if demand is strong |
| Retail reservation | 10% of the offer |
| Employee option | Up to 25,000 shares |
| Non-retail bidding day | June 24, 2026 |
| Retail and employee day | June 25, 2026 |
How the two-day bidding works
The OFS runs over two days. Day one, June 24, is for non-retail investors. These are big buyers like mutual funds, banks, and insurance firms. Day two, June 25, is for retail investors and company employees. A retail investor is a regular person who invests a small amount, usually up to Rs 2 lakh in one bid.
About 10% of the offer is set aside for retail investors. Employees of IRFC can also apply, with an option of up to 25,000 shares. Retail buyers may get the shares at the cut-off price, which can even be a little below the floor price. Bidding happens during normal market hours, from 9:15 a.m. to 3:30 p.m.
Why the government is selling
The government sells small stakes in public companies to raise money. This is called disvestment, or simply selling part of what the state owns. The cash helps fund the budget and new projects. The government does not lose control of IRFC by selling just 2%. It still owns the large majority of the company.
This is one of several such sales this year. So far in FY27, the government has raised Rs 16,479.89 crore from five other divestments. The IRFC OFS adds to that total. IRFC is popular with small investors, with about 50.66 lakh retail shareholders on record as of March 31. That wide base is one reason this sale is closely watched. For more on how other corporate cash moves work, see our explainer on the Bajaj Auto buyback and what the record date means for investors.
FAQ
What is an OFS in simple words?
An OFS, or Offer for Sale, is when a big shareholder sells shares directly on the stock exchange. Buyers place bids over one or two days. Here the government is the seller, and it is offering up to 2% of IRFC.
Why is the floor price lower than the market price?
The floor price of Rs 91 is set below the last close of Rs 98.37 to attract buyers. The small discount of about 7.49% is the reward for joining the sale. It encourages strong demand for the shares.
Can a normal person buy in the IRFC OFS?
Yes. Retail investors can bid on June 25, the second day. About 10% of the offer is reserved for them. You need a demat account and you bid through your broker during market hours.
Why it matters (especially for India / founders)
This sale matters for India in two ways. First, it raises money for the government without taking on new debt. Second, it lets more citizens own a part of a key railway company. For founders and business owners, an OFS is a useful lesson in how large owners can sell shares cleanly through the market. It shows how price, demand, and timing work together. If you are studying how Indian companies raise and move money, also read our piece on the Lendbox puzzle and the Turtlemint IPO.
The takeaway
The IRFC OFS is a clean, low-risk way for the government to sell a small 2% stake and raise cash. The Rs 91 floor price gives buyers a modest discount. Big investors bid first, then retail investors get their turn. With millions of small shareholders already on board, this sale will be a good test of how much faith investors still have in IRFC.
Sources
- Financial Express — IRFC: Government to sell 2% stake via OFS, floor price set at Rs 91
- Business Today — IRFC share price: OFS kicks off; floor price set at 7% discount
- PSU Connect — Government launches IRFC OFS: 2% stake sale via NSE and BSE, floor price Rs 91
