India skips oversubscription option in Indian Railway Finance stake sale

Indian Railway Finance

25/02/2026 15:13

Feb 25 (Reuters) - India will not exercise the oversubscription option for the Indian Railway Finance Corp offer-for-sale after the base offer did not receive full bids on the first day, an exchange filing showed on Wednesday.

Here are some details:

India said on Tuesday it would divest an up to 4% stake in Indian Railway Finance Corp through an offer-for-sale, including a 2% base offer and an additional 2% via the oversubscription option.

The Indian government currently owns an 86.36% stake in the financing arm of the Indian Railways.

The floor price for the OFS was set at 104 rupees, implying a 5% discount to the stock's closing price on Tuesday.

The oversubscription option allows the seller to potentially sell more shares than the base offer if investor demand is higher than expected.

The sale opened on Wednesday to non-retail investors and recorded an under-subscription of 11.8 million shares for the base issue.

The government said the total offer size would remain the same as the base offer size of a 2% stake.

Of the offer size, 14.52% will be available for bids by retail investors on Thursday.

 (Reporting by Mridula Kumar and Nishit Navin in Bengaluru; Editing by Shilpi Majumdar)

 ((mridula.kumar@thomsonreuters.com))