Government Offers Discounted Shares of Record-Profit Railway Company to Retail Investors

New Delhi: Retail investors now have a chance to buy shares of Indian Railway Finance Corporation (IRFC) at a discounted price as the government plans a stake sale via the Offer for Sale (OFS) route. IRFC, a Navratna company under the Ministry of Railways, reported a record profit in the last quarter.

The OFS will open for non-retail investors on Wednesday, while retail bidding will be allowed on Thursday, according to Arunesh Chawla, Secretary of the Department of Investment and Public Asset Management. The government is offering 2% equity in this sale, with an additional 2% Green Shoe option.

The floor price has been set at ₹104 per share, compared to the previous session’s closing of ₹109.40 on the BSE. The stock’s 52-week high and low are ₹148.90 and ₹108.05, respectively. Through this OFS, the government expects to raise approximately ₹5,436 crore. IRFC primarily raises funds for the railways and is one of the Ministry of Railways’ Navratna companies.

Record Profits Despite Market Volatility

While the stock has seen a roughly 12% decline over the past year, Nifty has gained about 11% during the same period. The shares are currently trading below their 50-day and 20-day simple moving averages of ₹118 and ₹126, respectively.

IRFC reported a record quarterly profit of ₹1,802 crore in December, marking an 11% year-on-year increase and the highest profit in the company’s history. This strong performance highlights the company’s stable earnings and the opportunity for retail investors to participate in a government-backed enterprise at an attractive price.