IRFC Share Price Fall 4.02% After Government Announces 2% OFS with 2% Oversubscription Option

Shares of Indian Railway Finance Corporation Ltd (NSE: IRFC) declined 4.02% to ₹105.04 as of 10:41 am IST on February 25, 2026, compared with the previous close of ₹109.44. The decline followed a regulatory filing by the government announcing an Offer for Sale (OFS), acting through the Ministry of Railways.

The stock opened at ₹105.99 and traded lower in early deals after the OFS notice was issued to the exchanges on February 24, 2026.

Indian Railway Finance Corporation Limited (NSE: IRFC) is the dedicated financing arm of Indian Railways. It raises funds from domestic and international markets to finance the acquisition of rolling stock and railway infrastructure assets.

The OFS will be conducted exclusively through the seller’s brokers on a separate window provided by the stock exchanges.

Centre to Offload Up to 4% Stake via OFS to Meet Public Shareholding Norms

According to the exchange filing dated February 24, 2026, the Government of India, through the Ministry of Railways, proposed to sell up to 26,13,70,120 equity shares, representing 2% of the total issued and paid-up equity share capital of the company.

The filing also provides for an oversubscription option of an additional 26,13,70,120 shares (another 2%), taking the total potential sale size to 4% of the equity base. The base offer opens on February 25, 2026 (T day) for non-retail investors and on February 26, 2026 (T+1 day) for retail investors and eligible employees.

The stated objective of the OFS, as per the notice, is to achieve minimum public shareholding compliance under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, read with Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

OFS announcements typically increase near-term supply in the market, which may influence price action around the offer window.

IRFC Stock Performance Snapshot

As of 10:41 am IST on February 25, 2026, on the NSE, IRFC shares were trading at ₹105.04, down 4.02% on the day.

The stock opened at ₹105.99 and touched a high of ₹105.99 and a low of ₹104.82 so far during the session. The previous closing price stood at ₹109.44.

The 52-week high is ₹148.95, while the 52-week low is ₹104.82. The company’s price-to-earnings ratio stands at 19.58, according to exchange data.

What this Means for Investors

The proposed OFS, if fully subscribed, including the oversubscription option, would result in a 4% dilution of the promoter’s stake, increasing public shareholding in the company.

The filing clarifies that the offer is being undertaken to meet regulatory minimum public shareholding norms. Such transactions are regulatory in nature rather than operational developments, and do not alter the company’s stated business strategy or financial guidance.

Short-term price volatility may persist during the OFS window due to supply dynamics, while the long-term fundamentals remain linked to IRFC’s financing model and its role as the dedicated financing arm of Indian Railways.

IRFC shares declined in early trade on February 25, 2026 after the Government of India announced a 2% Offer for Sale with an additional 2% oversubscription option, potentially taking the total stake sale to 4% of paid-up equity capital. The transaction, as stated in the exchange filing, is aimed at achieving minimum public shareholding compliance under SEBI regulations. Market reaction reflected near-term supply considerations, while the company’s underlying financing role and regulatory framework remain unchanged as per disclosed information.

Source:

• https://www.nseindia.com/get-quote/equity/IRFC/Indian-Railway-Finance-Corporation-Limited
• https://nsearchives.nseindia.com/corporate/vipulr_24022026203746_Notice_IRFC.pdf