Date: June 24, 2026 Β |Β Source: DIPAM, Upstox, BusinessToday, NewKerala Β |Β Floor Price: βΉ91/share
The Government of Indiaβs Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC) opened on June 24, 2026 β and was oversubscribed 1.86 times on Day 1. DIPAM has exercised the green shoe option. Retail investors and employees can bid on Thursday, June 25.
βOffer for Sale in Indian Railways Finance Corporation (IRFC) received an enthusiastic response from investors and was oversubscribed 1.86 times on the first day. Government has decided to exercise the green shoe option.β β DIPAM, June 24, 2026 (via X/Twitter)
π IRFC OFS β Complete Details
| Company | Indian Railway Finance Corporation (IRFC) |
| OFS Size | Up to 2% government stake (1% base + 1% green shoe) |
| Green Shoe | β Exercised on June 24 after 1.86x Day 1 subscription |
| Floor Price | βΉ91 per share |
| Day 1 (Non-retail) | June 24, 2026 β 1.86x oversubscribed |
| Day 2 (Retail) | June 25, 2026 β Retail investors & employees can bid |
| Divestment Number | 6th divestment transaction of FY27 |
| FY27 Total Raised | βΉ16,480 crore so far (across 6 PSU stake sales) |
| FY27 Budget Target | βΉ80,000 crore from PSU divestment & asset monetisation |
| IRFC Stock (June 24 close) | βΉ92.50 (-5.13% from prev. close of βΉ97.50) |
π’ What is IRFC?
- Established: 1986
- Parent: Government of India, Ministry of Railways
- Role: Dedicated financing arm of Indian Railways
- Function: Raises funds from capital markets to finance locomotives, coaches, wagons, and railway infrastructure
- Business Model: Borrows at market rates, lends to Indian Railways at a small spread β extremely stable, government-backed revenue
ποΈ Governmentβs FY27 Divestment Pipeline
Before IRFC, the government raised proceeds from OFS transactions in:
- Coal India
- NHPC
- General Insurance Corporation of India (GIC)
- Central Bank of India
- NLC India
With the IRFC stake sale, total FY27 divestment proceeds stand at βΉ16,480 crore. The governmentβs target of βΉ80,000 crore for FY27 remains ambitious β significant transactions remain in the pipeline, including a potential LIC stake sale raising up to βΉ10,000 crore.
β οΈ Should Retail Investors Apply?
Positives:
- Floor price βΉ91 is below current market price (βΉ92.50 close) β slight discount
- IRFC is a government-backed entity with extremely stable business model
- 1.86x Day 1 oversubscription shows strong institutional confidence
- Long-term play on Indiaβs railway infrastructure expansion
Risks:
- Stock fell 5β6% today due to OFS overhang β common in stake sales
- Post-OFS listing pressure as new shares enter market
- Valuation concern β some analysts say IRFC was already fully priced
- Seasonal/macro headwinds (monsoon deficit, rate hike fears)
π How to Apply (Retail Investors β June 25)
- Place bids through your broker (Zerodha, Upstox, Groww, etc.) on June 25
- Minimum bid: 1 lot (check broker for lot size)
- Floor price: βΉ91/share β bids at or above this price are eligible
- Settlement: T+1 β funds debited if allotted
- Allotment not guaranteed β depends on subscription level
Sources: DIPAM (official X post), Upstox, BusinessToday, NewKerala. Published June 24, 2026. Not investment advice. Always DYOR before participating in any OFS.
