IRFC shares tumble 5% as OFS opens for non-retail investors. Here’s what shareholders should know

Under the OFS, the Centre plans to sell a 1% stake in the company, representing 13.06 crore shares, with an option to offload an additional 1%, or another 13.06 crore shares, through the greenshoe option.

IRFC informed exchanges that the floor price has been fixed at Rs 91 per share, which is 7.5% lower than the stock’s previous closing price. The offer will open for retail investors on Thursday. As of the March quarter, the government owned 84.65% of IRFC, while retail shareholders held a 9.68% stake, according to stock exchange data.

The OFS is expected to increase the stock’s free float and improve liquidity, while offering investors another opportunity to participate in one of India’s largest railway financing companies.

The stake sale is part of the Centre’s ongoing divestment programme and follows recent OFSs in Coal India, Central Bank of India, NLC India, NHPC, and General Insurance Corporation of India (GIC). The government has exercised the greenshoe option in every OFS launched so far this year, aided by strong investor demand.

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IRFC Q4 snapshot

On the earnings front, IRFC reported a net profit of Rs 1,684 crore for the quarter ended March 2026, largely unchanged from Rs 1,682 crore in the corresponding period a year earlier. Revenue for the quarter rose 9% year-on-year to Rs 7,336 crore from Rs 6,723 crore in the year-ago period.

On a sequential basis, profit after tax declined 7% from Rs 1,802 crore reported in the December quarter. Revenue, however, increased 10% quarter-on-quarter from Rs 6,661 crore recorded in the October-December quarter of FY26.IRFC shares have fallen 21.8% so far this year and are trading nearly 60% below their record high of Rs 229 touched in 2024. Despite the sharp correction, the stock continues to enjoy a wide retail investor base, with more than 50 lakh small shareholders, according to the company’s latest shareholding data available on the BSE.

Indian Railway Finance Corporation is the dedicated financing arm of the Ministry of Railways and plays a critical role in funding the acquisition of rolling stock, railway infrastructure projects, and other capital expenditure undertaken by Indian Railways.

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