Shares of railway PSU Indian Rail Finance Corporation Ltd (IRFC) are in focus on Thursday as the non-retail portion of its ongoing offer for sale (OFS) managed to get fully subscribed and the government decided to exercise the oversubscription option. The OFS will open for retail bidding today. IRFC had 50.66 lakh retail investors as of March 31.

DIPAM in a social media post suggested the issue was oversubscribed 1.86 times on the first day. Data available with BSE suggested the issue received bids at an indicative price of Rs 91.10 apiece. This is against IRFC's Wednesday closing price of Rs 92.53 apiece and OFS floor price of Rs 91 per share.

"We wish to exercise the oversubscription option to the extent of 112,402,040 equity shares (representing 0.86 per cent of the total paid-up equity share capital of the Company) in addition to 13,06,85,060 Equity Shares of the company, (representing 1 per cent of the total paid-up equity share capital of the Company) forming part of the base offer size," IRFC informed stock exchanges.

Accordingly, the total offer size will be up to 24,30,87,100 shares, representing 1.86 per cent of the total paid up equity share capital of IRFC. Out of this 2,43,08,711 or 10 per cent of the offer, would be available for retail category today, subject to receipt of valid bids, as part of the offer. 

Those non-retail investors who placed their bids on June 24 and have chosen to carry forward their unallotted bids to T+1 day, will be allowed to revise their bids on Thursday as per the OFS.

"Additionally, 25,000 shares of the company (equivalent to 0.0002 per cent of the total issued and paid-up equity share capital of the company) will also be offered to the Employees, as part of the Offer," IRFC said. 

IRFC would be the sixth PSU where the government has trimmed exposure in FY27 so far. Data showed the government owned 86.36 per cent stake in IRFC. It is required to pare its stake to 75 per cent to meet the minimum public shareholding norms. The government earlier cuts stakes in General Insurance Corporation of India (GIC Re), NLC India Ltd, NHPC Ltd, Coal India Ltd and Central Bank of India and raised Rs 16,479.89 crore.