One step of the government dealt a blow to a major share in the railway sector. There was intense pressure on the shares of Indian Railway Finance Corporation i.e. IRFC as soon as the market opened on 25th February. It fell by about 4 percent during the day’s trading and slipped to Rs 104.75 on BSE. This is its new low of 52 weeks. Interestingly, on that day the entire market was trading in the green, but IRFC remained in the red.
The major reason for this decline is the decision of the Central Government, under which it is selling a part of its stake. The government has prepared to sell up to 4 percent shares in the company through Offer for Sale i.e. OFS. This offer opened for institutional investors on 25th February, while retail investors will get the opportunity on 26th February. About 2 percent stake is being sold in the first phase.
At present the government’s stake in IRFC is 86.36 percent. This is more than the minimum public shareholding rules, hence it is believed that the government is gradually reducing its share to bring it in line with the rules. By the end of the December 2025 quarter, there were more than 51 lakh retail investors in the company, who held about 9.5 percent stake. The market cap of the company is around Rs 1.37 lakh crore.
Financial status of the company
Talking about the functioning of the company, in the October to December 2025 quarter, IRFC recorded a revenue of more than Rs 6,661 crore and earned a net profit of Rs 1,802 crore. In the entire financial year 2025, its revenue was above Rs 27,000 crore and profit was around Rs 6,500 crore. That means the company’s business looks strong, but the news of the government’s stake sale has put the stock under pressure. It is also worth noting that the stock has fallen well below its 52-week high of Rs 148.90 and has fallen by about 15 percent in the last six months. In such a situation, this is the time for investors to take decisions carefully and wisely.
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