IRFC Share Price Slides 4% in Stock Market Today as Government Announces 4% OFS

IRFC share price came under pressure in the stock market today, slipping over 4% and hitting a fresh 52-week low after the government announced plans to offload up to a 4% stake through an Offer for Sale (OFS).

The move triggered selling right from the opening bell. Investors reacted fast. The gap-down opening set the tone for the day.

Let’s break down what happened and why IRFC share price is in focus.

Market Performance: IRFC Share Price Hits Fresh 52-Week Low

In the stock market today, IRFC shares witnessed sharp selling.

• The stock fell 4.22% to Rs 104.82 per share on NSE
• It has declined nearly 6% in the last two sessions
• The stock opened 3.15% lower, indicating immediate market reaction

The IRFC share price touched a fresh 52-week low during the session. The pressure was clearly linked to the government’s stake sale announcement.

Whenever a large shareholder plans to reduce stake, especially through an OFS, markets often react quickly due to supply concerns. That’s exactly what unfolded today.

Main News: Government to Offload Up to 4% Stake in IRFC

The core reason behind the fall in IRFC share price is the government’s decision to divest its stake in the company.

The government plans to sell up to 4% equity through an Offer for Sale (OFS).

Here are the key details:

• 2% stake will be offered initially
• An additional 2% will be available under the green shoe option
• Total potential divestment: 4% stake

The OFS structure has been clearly defined.

According to the official communication:

• The OFS opened on Wednesday for non-retail investors
• Retail investors can bid on Thursday

This structured timeline is typical for large public stake sales.

Floor Price Fixed at Rs 104 Per Share

One of the most important numbers influencing the IRFC share price in the stock market today is the floor price.

• Floor price: Rs 104 per equity share

This pricing plays a crucial role in short-term market behaviour. When the market price approaches the OFS floor price, selling pressure often increases as traders realign positions.

At this floor price:

• The government is expected to raise around Rs 5,430 crore
• The stake sale could generate significant proceeds through this divestment

This financial angle added another dimension to the stock’s movement.

Stake Sale Structure: Detailed Breakdown

The regulatory filing provided clarity on the number of shares involved.

• Up to 26.13 crore shares representing 2% stake will be sold initially
• An additional 26.13 crore shares may be sold under the green shoe option
• Total potential shares offered: 52.26 crore shares

This equals up to 4% of total issued and paid-up equity share capital.

Large supply entering the market tends to affect short-term pricing. That was visible in the IRFC share price movement.

Government Holding to Decline Post OFS

Before the OFS:

• Government holding in IRFC: 86.36%

After full stake sale (if 4% is exercised):

• Government holding will reduce to 82.36%

This shift in shareholding structure is significant from an ownership perspective.

However, the government will continue to remain the majority shareholder even after the divestment.

Why IRFC Share Price Reacted Sharply?

In the stock market today, the reaction was not random. It followed a clear trigger.

Key factors influencing IRFC share price:

• Announcement of up to 4% stake sale
• Large share supply entering the market
• Floor price set close to market price
• Consecutive session weakness (nearly 6% drop in two days)

Markets generally price in immediate dilution impact when a major shareholder sells stake. The price adjustment reflects that reaction.

Company Snapshot: Indian Railway Finance Corporation (IRFC)

Indian Railway Finance Corporation (IRFC) operates under the Ministry of Railways. It plays a key role in financing railway infrastructure and rolling stock requirements.

Current context in the stock market today:

• Fresh 52-week low
• Gap-down opening
• Volume reaction linked to OFS

The focus right now remains on how the OFS bidding progresses.

IRFC Share Price and Stock Market Today: Bigger Picture

The decline in IRFC share price highlights how sensitive the stock market today is to government divestment announcements.

When:

• A majority shareholder reduces stake
• The floor price is near prevailing market price
• Stake size is meaningful (up to 4%)

Short-term pressure often follows.

Investors closely track such developments because stake sales can temporarily alter supply-demand dynamics.

Summary: What This Means for IRFC Share Price?

Here’s a clear recap of the situation:

• IRFC share price fell 4.22% to Rs 104.82
• Stock hit a fresh 52-week low
• Government plans to sell up to 4% stake via OFS
• Floor price fixed at Rs 104 per share
• Potential fundraising of around Rs 5,430 crore
• Government holding may drop from 86.36% to 82.36%

The sharp move in the stock market today was directly linked to this announcement.

For now, the spotlight remains on the OFS process and how participation unfolds over the two bidding days.

The IRFC share price has reacted swiftly. And in markets, timing often tells the story before numbers settle.

Source: Moneycontrol