Official: Government Intends to Sell IRFC Shares through OFS

Date:

The government of India currently holds a large majority stake, 86.36%, in the financing arm of the Indian Railways, giving it significant control over the organization’s financial operations.

An official announced on Wednesday that the government intends to sell a portion of its stake in the state-owned Indian Railway Finance Corp (IRFC) through an offer for sale (OFS) during the current fiscal year.

Currently, the government holds an 86.36 percent stake in IRFC, which serves as the financing arm of the Indian Railways. To comply with the Securities and Exchange Board of India’s (Sebi) minimum public shareholding (MPS) requirement, the government must dilute its stake in IRFC by 11.36 percent.

An inter-ministerial group (IMG) consisting of senior officers from the Department of Investment and Public Asset Management (DIPAM) and the Railways Ministry has begun discussions to determine the extent of stake dilution.

The official stated that investor interest is being evaluated before finalizing the dilution amount. On the Bombay Stock Exchange (BSE), IRFC shares were trading at Rs 50.97 per share, a 0.14 percent increase from the previous close. Based on the current market price, the government stands to gain approximately Rs 7,600 crore from the sale of 11.36 percent of its stake.

In January 2021, IRFC was listed on the stock exchanges, with the share sale consisting of a fresh issuance of shares by the company and an additional 4.55 percent stake dilution by the government.

IRFC (Indian Railway Finance Corporation) is a public sector undertaking (PSU) in India that specializes in financing various projects and initiatives related to the Indian Railways. It was established in 1986 under the Ministry of Railways. IRFC primarily focuses on mobilizing funds for railway projects, including rolling stock like locomotives and coaches, railway infrastructure, and other related developmental activities.

In January 2021, IRFC made its debut on the Indian stock market through an Initial Public Offering (IPO). The IPO offered shares to the public, allowing investors to buy a stake in the company. IRFC’s IPO was met with considerable interest due to its association with the government, its involvement in critical infrastructure projects, and its role in supporting the development of the Indian Railways.

Investing in IRFC stock provides investors with an opportunity to potentially benefit from the growth and development of the Indian Railways, which is a crucial part of India’s transportation and logistics network. However, like any investment, it’s essential to conduct thorough research, understand the company’s financials, and consider market trends before making any investment decisions.

Please note that the information provided here is a brief overview, and if you’re considering investing in IRFC stock, it’s recommended to consult with financial advisors or professionals to make informed investment choices based on your individual financial goals and risk tolerance.

Share post:

Subscribe

spot_imgspot_imgspot_imgspot_img

Popular

More like this
Related

Benefits of Yoga Exercises: Flexibility, Strength, Posture, and More

Yoga exercise is a superb method to improve your...

Navigating the Evolving Tech Landscape: A Comprehensive Guide to GIT for Gen-Z Coders

In the rapidly changing landscape of technology, staying updated...

Power of GIT: Enhancing Workflow and Simplifying Collaboration

In today's fast-paced business environment, it is crucial for...

Chandrayaan 3: A Mission to the Moon’s South Pole

Chandrayaan 3: Updates from Launching to Today Chandrayaan 3 is...