The Indian Railway Finance Corporation (IRFC) is currently in the spotlight as the government executes a strategic stake sale through an Offer for Sale (OFS). The floor price for the issue was set at **Rs 104**, a level that has acted as a key technical support during recent market volatility. As of late February 2026, the government holds an **86.36%** stake in the company. The current OFS aims to divest a base stake of **2%**, with an additional **2%** greenshoe option. While the first day saw a subscription of approximately **95%** from non-retail investors, the government has reportedly decided not to exercise the oversubscription option, focusing on the core **2%** dilution to move closer to public shareholding norms. IRFC shares recently touched a 52-week low of **Rs 104.40**, reflecting broader pressure in the railway PSU sector. Despite this price correction, the company’s financial foundation remains robust. In the quarter ending December 2025, IRFC reported its highest-ever quarterly profit after tax of **Rs 1,802 crore**, a **10.5%** increase year-on-year. The company’s Assets Under Management (AUM) reached a milestone of **Rs 4.75 lakh crore** by the end of 2025. It also achieved its full-year sanction target of **Rs 60,000 crore** within just nine months of the fiscal year, highlighting efficient execution and a strong project pipeline. Market sentiment is currently driven by the upcoming Union Budget 2026-27. Analysts anticipate a nearly **10%** increase in railway capital expenditure, potentially raising outlays to **Rs 2.75 trillion** from the previous **Rs 2.52 trillion**. This increased spending is expected to focus on safety systems like Kavach, track doubling, and rolling stock expansion. The stock is trading below its 50-day and 200-day moving averages, which sit near **Rs 118** and **Rs 125** respectively. However, with a Price-to-Earnings (P/E) ratio around **19.5** and a dividend yield of **1.53%**, many experts view the current price levels as a tactical entry point for long-term investors. Operationally, IRFC is evolving under its "IRFC 2.0" strategy. The corporation is diversifying its lending portfolio to include metro rail projects, renewable energy, and dedicated freight corridors. This shift is designed to reduce dependency on traditional railway leasing and improve long-term margins. The OFS presents a transitional phase for the stock, balancing short-term supply pressure with long-term growth prospects linked to India's massive infrastructure modernization. Investors are closely monitoring the **Rs 104** floor price as a critical benchmark for the stock's immediate trajectory.