New Delhi. Shares of Indian Railway Finance Corporation (IRFC Shares) fell more than 4% in early trade on February 25. This fall in the shares of this government company is because the Central Government will sell up to 4% stake in the company through Offer for Sale (IRFC OFS) from today. After this news, the company's shares fell badly in the initial hours.
Shares of IRFC opened at Rs 105.99 in the morning and touched an intraday low of Rs 104.82. Let us tell you what is OFS due to which this decline in IRFC shares has been seen.
What is Offer for Sale (OFS)?
IRFC's offer for sale has opened for non-retail investors from February 25. At the same time, IRFC's offer for sale for retail investors will open tomorrow, Thursday, 26 February.
Offer for Sale (OFS) in the stock market is a process through which promoters or existing shareholders of a company sell their shares to the public. There are two types of OFS, first is auction OFS and second is normal OFS. Under Offer for Sale, the promoters of the company often sell shares at a discount price.
How much share will the government sell in IRFC under OFS?
The Government of India has proposed to sell 2% stake in Indian Railway Finance Corporation (IRFC), with an additional 2% stake to be sold through the green shoe option. More than 26.13 crore equity shares will be sold under this Offer for Sale (OFS), and there will be an option to sell an additional 26.13 crore shares in case of oversubscription.
The government has fixed the minimum price under OFS at Rs 104 per share, hence the government has come up with an offer for sale at a discount price compared to the previous closing.
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(Disclaimer: The information given here regarding shares is not an investment opinion. Since investing in the stock market is subject to market risks, please consult a certified investment advisor before investing.)
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