Indian Railway Finance Corporation's government stake sale faces analyst skepticism. The two-day OFS saw modest non-retail subscription at 94.98% on day one, with the floor price set at Rs 104, representing just a 4.95% discount to the previous closing price. Analysts cite limited near-term catalysts and modest arbitrage opportunities, noting the stake sale appears driven primarily by regulatory minimum public shareholding requirements rather than fundamental improvements. The government will reduce its stake from 86.36% to 82.36% post-divestment. While IRFC has benefited from railway capital expenditure supporting steady loan growth, valuations are no longer deeply discounted, and incremental upside may depend on broader market sentiment rather than company-specific triggers.
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