IRFC shares decline 4% as government plans to divest 4% via OFS. Check floor price, other details

Shares of Indian Railway Finance Corporation fell as much as 4% to an intraday low of Rs 105.05 on the BSE on Wednesday after the government announced plans to sell up to a 4% stake in the company through an offer for sale (OFS). The issue opens for non-retail investors on Wednesday, while retail investors can place bids on Thursday.

The government has offered to divest 2% equity in IRFC with an additional 2% as green shoe option. Under the OFS, over 26.13 crore equity shares of the company will be offloaded with an option to sell an additional 26.13 crore shares under the oversubscription option.

The floor price for the issue is set at Rs 104 per share taking the OFS size to Rs 5,436 crore through the sale of 4% equity. The floor price is at a 5% discount over yesterday's closing price of Rs 109.44, 2.2% lower over Monday's close.


IRFC is the dedicated funding arm of Indian Railways and the company is entrusted with mobilising funds from domestic and overseas markets to meet the pre-dominant portion of the extra budgetary resources requirement of Indian Railways. It is a Navratna public sector enterprise under the administrative control of the Ministry of Railways.

IRFC Q3 snapshot

Last month, the company reported its highest-ever quarterly profit for the third consecutive quarter, supported by steady loan growth and improving margins. For the quarter ended December 2025, IRFC posted a profit after tax of Rs 1,802 crore, marking an 11% year-on-year (YoY) increase and the highest quarterly profit in the company’s history.

Net interest margins improved by over 8% YoY during the quarter, aided by value-accretive disbursements across diversified segments and disciplined liability management. Total income stood at Rs 6,719 crore for the quarter, while income for the nine-month period came in at Rs 20,009 crore.

Revenues in Q3 declined to Rs 6,661 crore, compared with Rs 6,763 crore a year ago. The company said the marginal YoY moderation in quarterly income was largely due to a one-year extension of a moratorium granted by the Ministry of Railways for a project lease agreement, which affected revenue recognition during the period.

The IRFC stock has been a big laggard, sliding 12% over a one-year period when Nifty has gained 11% in the same time. It is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 118 and Rs 126, respectively.

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