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CORPORATE & BUSINESS Disinvestment

Union Government Offloads 2% Stake in Indian Railway Finance Corporation

The Government of India has planned a disinvestment of up to 2% stake in the Indian Railway Finance Corporation (IRFC).
The transaction will be executed via the Offer for Sale (OFS) route, comprising a 1% base offer and an additional 1% option via the Green Shoe Option.
An OFS is a stock market mechanism enabling promoter entities to directly sell their holdings to institutional and retail investors.
A Green Shoe Option provides the underwriters or sellers the authority to sell more shares than originally planned if demand is robust.
This move is part of the government's capital restructuring and asset monetization goals in public sector undertakings.

Key Facts / Static GK

Indian Railway Finance Corporation (IRFC) Founded: 12 December 1986
IRFC Headquarters: New Delhi
Parent Ministry: Ministry of Railways
Status: Navaratna PSU (granted in March 2025)

Practice Quiz — 24 June 2026

Q1. Under which specific developmental operation has the World Bank approved the $1.5 billion financing to boost private sector jobs in India?

Q2. Which is the first Indian Non-Banking Financial Company (NBFC) to utilize the RBI's subsidized hedging facility for its $300 million dollar bond issuance?

Q3. Consider the following statements regarding the Government's stake sale in IRFC: 1. The government plans to divest up to 2% stake through an Offer for Sale (OFS). 2. The sale includes a 1% base offer and a 1% Green Shoe Option. 3. IRFC is a Maharatna PSU under the Ministry of Railways. Which of the statements given above are correct?

Q4. Which Indian fintech startup recently obtained its first international payment service license in Canada to expand its cross-border services?

Q5. NHAI has partnered with which organization to set up India's first permanent research centre dedicated to transport and logistics economics?

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