Centre considering stake sale in IRFC via OFS: Report
Indian Railway Finance Corp (IRFC) through an offer for sale (OFS) in the current fiscal, PTI reported Wednesday, citing official sources. The Indian government currently holds an 86.36% stake in the financing arm of the Indian Railways. The PTI reported that an inter-ministerial group (IMG) having senior officers from the Department of Investment and Public Asset Management (DIPAM) and the Railways Ministry has started consultations to decide on the quantum of stake dilution.
The government has to dilute 11.36% stake in IRFC , to make the central public sector enterprise compliant to Sebi's minimum public shareholding (MPS) norm. As per MPS norm, a listed entity must have a minimum public float of 25% within five years of listing. "We are assessing investor appetite before deciding on the quantum of dilution," PTI reported quoting the official At the current market price, sell of 11.36% would fetch the government around Rs7,600 crore.
The government had listed IRFC on stock exchanges in January 2021. The share sale consisted of fresh issue of shares by the company and an additional 4.55% stake dilution by the government. IRFC reported a net profit of ₹1,557 crore in the quarter ended June, against 6% down from 1,660 crore in the corresponding quarter last fiscal Shares of IRFC were trading at ₹50.97 a share, up 0.14% over previous close on BSE.
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