Indian Railway Finance Corporation (IRFC) share price today
Indian Railway Finance Corporation (IRFC) share price fell to its lowest level in 25 months on Wednesday. The scrip declined as much as 4.2 per cent to ₹104.82 per share, the lowest level since January 11, 2024, on the National Stock Exchange (NSE).
Why did Indian Railway Finance Corporation (IRFC) share price fall today?
Shares of IRFC were reeling under selling pressure on Wednesday as the bidding for the Government’s offer for sale (OFS) opened on Wednesday. The Ministry of Railways is selling up to 4 per cent stake in the public sector undertaking (PSU) company.
The OFS comprises 2 per cent equity or 261.4 million shares as the base offer, and another 2 per cent or 261.4 million shares as the greenshoe option, according to an exchange filing. The floor price of the offer is ₹104, which indicates a discount of 5 per cent from Tuesday’s closing price.
The OFS is open for subscription on Wednesday for non-retail investors, while retail investors can place their bids on Thursday, IRFC said in an exchange filing.
Analysts view
The government’s stake divestment in IRFC introduces a technical supply event into a stock that has already seen a sharp rerating. Markets tend to react first to liquidity dynamics and later to fundamentals, said Charmi Shah, business head at Wealth1.
In the near term, increased float and potential institutional block deals could cap upside, particularly when PSU railway names are trading at elevated multiples relative to their historical averages. However, IRFC’s business model remains largely unchanged — it operates on a spread-based financing structure with sovereign-linked counterparties. The real question is not divestment, but whether earnings growth can justify current valuations once the liquidity premium fades, she added.
Government divestment in IRFC should also be interpreted as a gradual move toward broader market participation and improved corporate governance standards. Higher public shareholding enhances transparency, analyst coverage, and institutional ownership depth, said Jickson Sajee Kumar, research analyst, INVAsset PMS.
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