IRFC hits new low
Indian Railway Finance Corporation Ltd (IRFC) shares remained under pressure in early trade on Wednesday, February 25, 2026, as bidding opened for non-retail investors under the government’s offer for sale (OFS). The stock was trading near Rs. 105, down about 4%, after touching a fresh 52-week low of Rs. 104.80, as the market absorbed the near-term supply overhang and priced in the OFS floor.
In a regulatory filing, IRFC said the floor price has been fixed at Rs. 104 per share. At this level, the government is expected to raise about Rs. 5,430 crore by offloading up to 4% stake. The Centre currently holds 86.36% in IRFC, which would reduce to 82.36% post the sale. The OFS opened for non-retail investors on Wednesday, while the retail portion is scheduled to open on Thursday, keeping attention on the eventual cut-off price and the depth of demand across categories.
The structure also allows non-retail investors to carry forward unallotted bids to T+1 for potential allocation from any unsubscribed retail portion, with the option to revise bids as per OFS guidelines. Any unsubscribed portion in the non-retail category after allotment can be eligible for allocation in the retail category, with allocation to non-retail investors at a price equal to the cut-off price or higher, as discovered through bids, features that can influence bidding behaviour and improve absorption if the book builds well on day one.
Strategically, the sale is part of the government’s effort to align IRFC with minimum public shareholding (MPS) norms. With public float requirements mandating 25% minimum public shareholding within five years of listing, the government would need to dilute about 11.36% stake from the current level to fully meet the threshold. While such offerings often weigh on prices in the near term due to incremental supply and discount-to-market floor pricing, successful subscription can improve liquidity and broaden ownership over time, leaving the stock’s near-term trajectory dependent on subscription trends and the final cut-off price.
The OFS headline typically pressures PSU counters in the near term as the market factors in incremental float and potential pricing discovery around the sale, particularly when the stock is already near key support levels. In IRFC’s case, the dip to Rs. 104.80 (its 52-week low) reflects both the immediate supply concern and risk-off positioning ahead of clarity on key OFS specifics such as the offer price/floor price, bidding window and overall demand response.