New Delhi [India], June 24 (ANI): The Centre's Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC) received strong investor interest on the first day, with the issue being subscribed 1.86 times, prompting the government to exercise the green shoe option.

The Department of Investment and Public Asset Management (DIPAM) announced the development through a post on the social media platform X on Wednesday.

'Offer for Sale in Indian Railways Finance Corporation (IRFC) received an enthusiastic response from the investors and was oversubscribed 1.86 times on the first day. Government has decided to exercise the green shoe option. Retail investors and employees get to bid on Thursday 25th June 2026,' DIPAM said.

The government had earlier on Tuesday announced plans to sell up to a 2 per cent stake in IRFC through the OFS route as part of its disinvestment programme.

Under the offer structure, the government initially proposed to sell 1 per cent of its equity holding in the company. It also included a green shoe option of an additional 1 per cent stake, which could be exercised in case of strong investor demand.

Following the robust response from investors on the first day, the government decided to exercise the additional 1 per cent green shoe option, effectively increasing the size of the stake sale.

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

The stake sale in IRFC is part of the government's broader disinvestment strategy aimed at reducing its holding in public sector enterprises while increasing public shareholding.

The shares of IRFC on Wednesday came under heavy selling pressure in the stock market. The stock closed at Rs 92.50 per share on the National Stock Exchange (NSE), down more than 6 per cent from the previous close.

Retail investors and eligible employees will be able to participate in the OFS on Thursday, June 25.

IRFC serves as the dedicated financing arm of Indian Railways and plays a key role in raising funds for railway infrastructure and expansion projects. The company mobilises resources from domestic as well as overseas capital markets to support the financing needs of Indian Railways. (ANI)