The Government of India has decided not to exercise the greenshoe option in the ongoing Offer for Sale (OFS) of Indian Railway Finance Corporation (IRFC), keeping the total divestment at 2% of the company’s paid-up equity share capital.
As per the notice dated February 24, 2026, the President of India, acting through the Ministry of Railways, had proposed to sell up to 26,13,70,120 equity shares, representing 2% of IRFC’s total paid-up equity share capital. This constituted the base offer size under the OFS.
The OFS opened on February 25, 2026 (T day) for non-retail investors and on February 26, 2026 (T+1 day) for retail investors, employees, and non-retail investors who opted to carry forward their unallotted bids from T day. The offer was conducted through the separate designated window of BSE Limited and National Stock Exchange of India Limited.
In addition to the base offer size, the government had retained an option to sell an additional 26,13,70,120 equity shares, representing another 2% stake, under the oversubscription option, commonly referred to as the greenshoe option. If exercised, the total offer size would have increased to 4% of IRFC’s paid-up equity share capital.
However, the government has now confirmed that the oversubscription option will not be exercised. As a result, the total stake sale remains limited to the base offer size of 2%, and the equity shares forming part of the base offer will continue to be treated as the final offer shares.