Market Brief: IRFC Stake Sale and Sector Outlook The Government of India has initiated a significant divestment move, launching an **Offer for Sale (OFS)** to offload up to **4% stake** in the Indian Railway Finance Corporation (IRFC). The transaction is structured with a base offer of **2% (26.14 crore shares)** and an additional **2% oversubscription option**. This sale is part of a broader strategic plan to raise nearly **₹80,000 crore** via railway PSU stake sales by **FY30**, while also meeting SEBI's minimum public shareholding requirements. Offer Details and Pricing The government has set a floor price of **₹104.00 per share** for the OFS. This represents a discount to the current market price, which closed at **₹109.90** on February 24, 2026. The bidding window follows a tiered timeline: * **February 25, 2026:** Exclusive access for **Non-Retail Investors**. * **February 26, 2026:** Opening for **Retail Investors** and employees. Market Performance and Financials IRFC currently holds a market capitalization of approximately **₹1,43,650 crore**. Despite a recent year-on-year stock correction of about **11%**, the company’s underlying fundamentals remain stable. Key performance indicators for the current period include: * **Q3 FY26 Net Profit:** **₹1,802 crore**, reflecting a **10.5%** growth. * **Dividend Yield:** Maintaining a steady **1.46%**. * **Assets Under Management (AUM):** Approaching **₹5 lakh crore** as the company diversifies into non-railway infrastructure projects. Sector Context: Budget 2026 The timing of the stake sale coincides with a record-breaking **Union Budget 2026-27** allocation for the Ministry of Railways. The government has earmarked a total outlay of **₹2,78,030 crore**, alongside a massive capital expenditure plan of **₹2,93,030 crore**. Investment focus areas include the development of **7 high-speed rail corridors** and the rapid installation of the **Kavach** safety system. These large-scale projects provide a strong long-term financing pipeline for IRFC, supporting its transition from a single-client model to a broader infrastructure ecosystem financier.