Synopsis: A leading PSU financial stock fell nearly 4% after the government announced plans to divest up to 4% stake via OFS at a floor price of ₹104. The move could raise around ₹5,430 crore, triggering short-term volatility amid increased supply and cautious investor sentiment.
The shares of prominent financial institutions plummeted 5 percent in today’s trading session from the intraday high after the Government of India is set to sell up to 26.13 crore equity shares in the company.
With a market capitalization of Rs 1,37,676.71 crore, the shares of Indian Railway Finance Corporation Ltd were trading at Rs 105.35 per share, decreasing around 4 percent as compared to the previous closing price of Rs 109.40 apiece.
Offer of sale
The shares of Indian Railway Finance Corporation Ltd have seen bearish movement after the government announced a 2% stake sale through an Offer For Sale, with an additional 2% green shoe option. The floor price has also weighed on sentiment, as it signals near-term supply in the market. Consequently, investors appear cautious, anticipating potential price volatility and the impact of short-term dilution.
At a floor price of Rs 104 per share, the government could raise around Rs 5,430 crore by divesting up to a 4% stake in the company under the Ministry of Railways. The base offer comprises 2% equity, or 26.13 crore shares, with an additional 2% available through a green shoe option.
Furthermore, the OFS will open for non-retail investors on February 25, followed by retail participation on February 26. If the green shoe option is fully exercised, the total stake sale will increase to 4%, potentially enhancing liquidity but also creating short-term supply pressure in the stock.
Financials
The company reported a marginal 2% decline in revenue to Rs 6,661 crore in Q3FY26 compared to Rs 6,763 crore in Q3FY25, indicating slight pressure on topline growth. However, net profit rose 10% to Rs 1,802 crore, reflecting improved margins and operational efficiency. This suggests better cost management and profitability despite muted revenue performance during the quarter.
Between Dec 2024 and Dec 2025, the company’s operating performance remained largely stable. Operating profit (financing profit) stood at Rs 1,629 crore in Dec 2024 and improved to Rs 1,746 crore in Dec 2025. Meanwhile, operating margin held firm around 24%–26%, indicating consistent profitability and steady cost management despite moderate fluctuations in quarterly revenue.
Indian Railway Finance Corporation (IRFC) is the dedicated financing arm of Indian Railways, primarily responsible for raising funds to support railway infrastructure expansion and modernization. The company mobilizes resources through bonds and other borrowings, lending them to the Ministry of Railways. IRFC plays a crucial role in funding rolling stock and project assets.
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