India’s Department of Investment and Public Asset Management (DIPAM) has announced a 2% equity disinvestment in Indian Railway Finance Corporation (IRFC), with an additional 2% green shoe option. The Offer for Sale (OFS) will open on February 25, 2026 for non-retail investors, followed by retail participation on February 26.
The Government of India, through DIPAM Secretary Tuhin Kanta Pandey, confirmed plans to offload 2% equity in IRFC, with flexibility to extend by another 2% under the green shoe option. This calibrated disinvestment is part of the government’s broader strategy to raise funds while deepening market participation in public sector enterprises.
The OFS window will open on February 25, 2026 for non-retail investors, while retail investors will be able to participate on February 26, 2026. IRFC, the financing arm of Indian Railways, plays a crucial role in funding railway projects, making this disinvestment significant for both institutional and retail investors.
Market experts suggest the move could improve liquidity in IRFC’s stock and align with the government’s fiscal consolidation goals.
Major Takeaways
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Govt to disinvest 2% equity in IRFC with 2% green shoe option
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DIPAM Secretary confirms calibrated approach to equity sale
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OFS opens Feb 25 for non-retail investors, Feb 26 for retail investors
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IRFC is the financing arm of Indian Railways, key to infrastructure funding
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Disinvestment expected to improve liquidity and broaden investor base
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Supports government’s fiscal consolidation and asset monetization agenda
Conclusion
The IRFC disinvestment reflects India’s balanced approach to asset monetization, ensuring both institutional and retail investors can participate. By combining a green shoe option with phased OFS access, the government aims to maximize value while strengthening fiscal discipline and market confidence.
Sources: Business Standard, Mint, The Economic Times