New Delhi [India], June 23 (ANI): The Government of India has announced plans to sell up to two per cent stake in Indian Railway Finance Corporation (IRFC) through an Offer for Sale (OFS), according to the Department of Investment and Public Asset Management (DIPAM).

DIPAM announced the stake sale through a post on social media platform X on Tuesday.

'Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 1 per cent equity in the IRFC along with additional 1 per cent as green shoe option,' DIPAM said.

An Offer for Sale (OFS) is a mechanism through which promoters of a listed company, including the government in public sector enterprises, can sell their shares on the stock exchange in a transparent manner. Under this process, institutional and retail investors can bid for shares during a specified period.

According to the announcement, the government will initially sell 1 per cent of its equity holding in IRFC. It has also included a green shoe option of an additional 1 per cent stake, which can be exercised if investor demand is strong.

The proposed transaction is part of the government's disinvestment programme aimed at reducing its stake in public sector enterprises while enhancing public shareholding.

The shares of IRFC ended Tuesday's trading session at Rs 98.37 apiece on the BSE, down 2.53 per cent.

The OFS will open for non-retail investors on Wednesday, while retail investors will be able to participate in the share sale on Thursday.

IRFC is one of the key public sector financial institutions supporting the Indian Railways network. Established on December 12, 1986, the company serves as the dedicated financing arm of Indian Railways and plays a crucial role in raising funds for railway infrastructure and expansion projects.

The company mobilises resources from both domestic and overseas capital markets to meet the financing requirements of Indian Railways.

IRFC holds Navratna status and functions under the Ministry of Railways. Apart from its role in railway financing, the company is also registered with the Reserve Bank of India as a Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC) and Infrastructure Finance Company. (ANI)