The Government of India will sell only a 2% stake in IRFC via OFS, skipping the oversubscription option that could have raised the sale to 4%. Institutional investors subscribed to 94.98% of their quota, prompting the decision to restrict the sale to the base offer.
The Ministry of Railways, acting on behalf of the President of India, confirmed that the oversubscription or green shoe option will not be exercised in the IRFC OFS. The floor price was set at ₹104 per share, representing a discount to the previous closing price.
Key Highlights
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Government limits IRFC stake sale to 2% through OFS
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Oversubscription option of an additional 2% not exercised
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Institutional investors subscribed to 94.98% of their reserved shares
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Floor price fixed at ₹104 per share, about 4.5% below market close
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IRFC shares fell nearly 4% as the OFS opened
Sources: CNBC-TV18, Moneycontrol, The Economic Times, The Financial Express