Shares of Indian Railway Finance Corporation (IRFC) fell nearly 6% on Wednesday as the government's offer for sale (OFS) opened for bidding by non-retail investors.
The state-run railway financier saw sharp selling after the transaction was launched at a discount to prevailing market prices, signaling immediate pressure on the stock's valuation.
The government is seeking to divest up to a 2% equity stake in IRFC through the OFS mechanism.
The government is seeking to divest up to a 2% equity stake in IRFC through the OFS mechanism.
The decision to price the sale below current market levels has weighed on investor sentiment, with the discount acting as a direct headwind for the share price.
The sale is part of the broader public sector divestment strategy, aiming to reduce state ownership in key infrastructure entities.
The transaction is being executed through a base price mechanism, with the final allotment determined by the bids received from institutional and high-net-worth investors.