The Indian government has officially launched its divestment program for the Indian Railway Finance Corporation (IRFC), aiming to offload a total stake of up to 4%. The offer for sale (OFS) process begins today, February 25, 2026, for non-retail institutional bidders, followed by retail participation tomorrow. This strategic move is expected to generate approximately 5,430 crore for the national exchequer. The offer is structured with a 2% base divestment, involving 26.14 crore shares, and includes a green shoe option for an additional 2% depending on market demand. **Offer Details and Pricing** The floor price for the transaction has been set at 104 per share. This represents a discount compared to the stock's recent market performance, where IRFC shares closed at 109.40 on the BSE just prior to the announcement. The current share price reflects a minor intraday dip of 2.19% as the market adjusts to the increased equity supply. Following a successful sale of the full 4% stake, the government’s holding in the railway financing arm will reduce from 86.36% to 82.36%. **Financial Strength and Performance** IRFC continues to demonstrate robust financial health, recently reporting record-breaking results for the third quarter of the 2025-26 fiscal year. - Net Profit: 1,802.19 crore (up 10.52% YoY) - Assets Under Management (AUM): 4.75 lakh crore - Net Worth: 56,625.41 crore - Dividend Payout: 1.05 per share interim dividend declared recently The company has successfully maintained a zero Non-Performing Asset (NPA) record, reinforcing its status as a high-quality credit institution. Its annual sanction guidance of 60,000 crore was remarkably achieved within the first nine months of the fiscal year. **Strategic Market Context** The divestment comes at a time of significant expansion for the Indian railway sector. The Union Budget 2026-27 recently allocated 2.93 lakh crore for railway capital expenditure, a 10.5% increase over previous estimates. IRFC is evolving its business model through its "IRFC 2.0" strategy. While it remains the primary funding arm for the Ministry of Railways, the corporation is actively diversifying into allied infrastructure. New sanctions worth over 45,000 crore have been directed toward power, renewable energy, and industrial connectivity projects. The market remains focused on IRFC’s role in financing the national high-speed rail corridors and the East-West Dedicated Freight Corridor, which are central to the government’s long-term infrastructure vision.