The government’s divestment drive continues to gather pace in FY27, with the offer-for-sale (OFS) in Indian Railway Finance Corporation (IRFC) set to become the sixth stake sale by the Centre this fiscal year.
The OFS will open for non-retail investors on June 24, with the government planning to divest up to a 2% stake in the railway financing company.
Prior to the IRFC issue, the government had pared its holdings through OFS transactions in several public sector enterprises and banks, including Coal India, NHPC, General Insurance Corporation of India (GIC), Central Bank of India, and NLC India, helping it garner significant disinvestment proceeds so far this fiscal.
In a post on X, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the government offers to disinvest 1% equity in the IRFC along with an additional 1% as a green shoe option.
The government has not yet disclosed the floor price for the OFS.
Shares of IRFC closed at ₹98.69, down 2.16% over the previous close on BSE.
On the NSE, the stock settled at ₹98.67, down 2.21%.
“Offer for Sale for Indian Railway Finance Corporation (IRFC) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday,” the X post said.
In the current fiscal, the government has sold minority stakes in five central public sector enterprises and banks, taking the total disinvestment proceeds to ₹16,480 crore so far.
Here is the breakup
| S. No. | Title | Name of CPSE | % of GoI Shares Disinvested | Method of Disinvestment | Receipts (₹ Crore) | GoI Shareholding Post Disinvestment (%) |
|---|---|---|---|---|---|---|
| 1 | CBoI | Central Bank of India | 8.08 | OFS | 2,266.13 | 81.19 |
| 2 | CIL | Coal India Ltd. | 2.00 | OFS | 5,542.36 | 61.13 |
| 3 | NHPC Ltd. | NHPC Limited | 6.01 | OFS | 4,357.36 | 61.39 |
| 4 | NLC India Ltd. | NLC India Limited | 2.73 | OFS | 1,223.57 | 69.47 |
| 5 | GIC | General Insurance Corporation of India | 5.00 | OFS | 3,090.47 | 77.40 |
| Total | – | – | – | – | 16,479.89 | – |
Source: DIPAM website
Disinvestment target
The government has already readied a pipeline for PSU disinvestment and hopes to exceed the budgeted target of ₹80,000 crore from PSU stake sales and asset monetisation in FY 2026-27.
About IRFC
Indian Railway Finance Corporation Limited (IRFC), established in 1986, is a Government of India enterprise operating under the Ministry of Railways.
The company serves as the dedicated financing arm of Indian Railways, raising funds from capital markets and financial institutions to support the acquisition of rolling stock such as locomotives, coaches, and wagons, as well as the development of critical railway infrastructure projects.
IRFC follows a unique cost-plus financing model, which provides predictable earnings and stable cash flows.
Over the years, the company has played a pivotal role in the modernisation and expansion of India’s railway network by financing projects related to railway electrification, high-speed rail corridors, and enhanced connectivity to ports and industrial hubs.
The company enjoys a strong credit profile and holds Navratna status.
With the government’s continued focus on increasing capital expenditure in the railway sector and accelerating infrastructure development, IRFC remains a key enabler of India’s railway expansion plans and is closely tracked by investors seeking exposure to long-term infrastructure financing opportunities.
LIC OFS soon?
According to media reports, the government is considering the sale of around a 2% stake in the life insurer through an offer for sale (OFS) in late June or early July. The proposed stake sale could help the Centre raise up to ₹10,000 crore (around $1 billion) from institutional investors.
According to the reports, the Department of Investment and Public Asset Management, under India’s Finance Ministry, is working with Goldman Sachs Group Inc., Motilal Oswal Investment Advisors Ltd., BNP Paribas SA, and IIFL Capital Services Ltd. to manage the transaction.
However, the details of the deal, including the timing and size, could still change, as deliberations are ongoing.
In May 2022, the government had sold a 3.5% stake in LIC and had raised about ₹21,000 crore.