The IRFC share price caught investors’ attention on Thursday, February 26, as the retail portion of the government’s Offer for Sale (OFS) opened. After institutional investors showed only partial interest, individual investors now have a chance to place their bids.
Market Snapshot
On Thursday, IRFC shares rose by 0.7%, touching a day-high of ₹105.30. The uptick comes as retail participation begins, signaling fresh momentum in the stock after muted institutional demand.
- Retail investors can now submit their bids for the ongoing OFS.
- Institutional investors had subscribed to 22.34 crore shares out of 23.52 crore allocated, covering 94.98% of their portion.
The modest rise reflects investor confidence in the stock’s fundamentals amid ongoing government divestment plans.
Institutional Participation in the OFS
The government’s OFS had a planned allocation for institutional buyers of over 23.52 crore shares, but full subscription was not achieved. Key points:
- Indicative price per share: ₹104.12
- Total bid value by institutions: ₹2,326 crore
- Floor price of OFS: ₹104 per share
The government chose not to exercise the oversubscription option. Initially, the base OFS aimed to sell up to 261.37 million shares (2% stake), with a greenshoe option for an additional 2%. With institutional bids not fully utilized, the oversubscription facility remains unused.
Even after this sale, the government retains a substantial 86.36% stake in IRFC, maintaining control over the PSU.
IRFC Secures Japanese Yen Loan
IRFC is also moving forward with international fund-raising. In a recent filing, the company announced:
- A loan facility of $400 million in Japanese yen
- Borrowing via the External Commercial Borrowing (ECB) route
- Five-year unsecured loan, benchmarked to the Tokyo Overnight Average Rate (TONAR)
- Collaboration with a banking consortium including Sumitomo Mitsui Banking Corporation (SMBC) and MUFG Bank at GIFT City branches
This follows a similar facility in December 2025, when IRFC raised yen equivalent to $300 million. Such moves underline the company’s strategy to access global funding sources for railway projects.
Financial Performance Highlights
IRFC’s latest financials reflect strong operational stability:
- Net Profit (Q3 December 2025): ₹1,802 crore
- Assets Under Management (AUM): ₹4.75 lakh crore
The company is actively implementing its IRFC 2.0 plan, which aims to:
- Shift from a single-client model focused on the Ministry of Railways
- Expand into a multi-client ecosystem, encompassing the broader railway sector and allied infrastructure
This transformation signals IRFC’s effort to diversify its operations and grow beyond traditional financing avenues.
IRFC Share Price Trends
The stock has seen some short-term pressure:
- 1 Month: -8%
- 3 Months: -11%
- 1 Year: -15%
However, IRFC has rewarded long-term investors significantly, with 325% gains over the past 5 years, reflecting its steady growth trajectory and strategic positioning in the railway financing space.
Key Takeaways
- Retail investors now have a chance to participate in the OFS, following limited institutional uptake.
- IRFC’s international borrowings indicate proactive capital management.
- Strong net profit and AUM growth highlight stable fundamentals.
- The IRFC 2.0 roadmap points to future diversification and expansion.
IRFC remains a focal point in the stock market today, combining steady financial performance with strategic expansion plans, while offering investors an opportunity to participate in government divestment.
Source: Livemint
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