Indian Railway Finance Corporation (IRFC) remains a central focus in the capital markets as the government proceeds with its stake divestment strategy. In a recent development, the government decided not to exercise the **oversubscription (greenshoe) option** in its Offer for Sale (OFS). This decision followed moderate participation from institutional investors during the initial bidding phase. The OFS was launched with a base offer of **2% equity**, equivalent to approximately **26.14 crore shares**. While an additional **2%** was available via the greenshoe option, the final sale is expected to remain limited to the base portion. The floor price for the transaction was set at **104 per share**, representing a discount to the prevailing market price at the time of the announcement. Market Performance and Valuation Following the OFS news, IRFC shares experienced downward pressure, touching a **52-week low** near the **104.80** mark. This correction reflects the market's absorption of the additional share supply. Despite the short-term price volatility, the company maintains a significant market capitalization of approximately **1,36,600 crore**. The stock currently trades at a Price-to-Earnings (P/E) ratio of approximately **19.50**, with a Price-to-Book (P/B) value of **2.71**. For the trailing twelve months, the Earnings Per Share (EPS) stands at **5.36**, supported by a consistent dividend yield of **1.53%**. Financial Highlights and Growth IRFC continues to report a resilient financial profile, characterized by record-breaking profitability. For the quarter ended December 2025, the company posted its **highest-ever quarterly Profit After Tax (PAT)** of **1,802 crore**, marking a **10.5% increase** year-on-year. * **Assets Under Management (AUM):** Reached an all-time high of **4.75 lakh crore**. * **Net Interest Margins (NIM):** Improved by over **8% YoY**, driven by disciplined liability management. * **Revenue:** Witnessed a marginal dip of **1.5%**, totaling **6,661 crore** for the quarter, primarily due to a moratorium extension on certain lease agreements. * **Sanctions:** The company achieved its full-year sanction guidance of **60,000 crore** within the first nine months of the fiscal year. Strategic Shift: IRFC 2.0 Under its "IRFC 2.0" strategy, the corporation is evolving from a single-client model focused solely on the Ministry of Railways to a broader multi-client ecosystem. This includes financing for allied infrastructure and the **Dedicated Freight Corridor (DFCCIL)**. Recent global engagement remains strong, with IRFC securing a **400 million USD** loan from a consortium of Japanese banks in February 2026. This follows a **300 million USD** facility raised in late 2025, aimed at optimizing borrowing costs and diversifying its capital base. The company maintains a **zero Non-Performing Asset (NPA)** track record, ensuring high asset quality as it expands its footprint across India's transport and infrastructure landscape. While the OFS has introduced near-term supply pressure, the underlying fundamentals remain supported by robust credit growth and a dominant role in national infrastructure financing.