Description

BSE circular announcing the opening of an Offer for Sale (OFS) for Indian Railway Finance Corporation Limited, with the seller accepting bids even in case of undersubscription.

Summary

BSE has issued a circular announcing the opening of an Offer for Sale (OFS) for Indian Railway Finance Corporation Limited (IRFC). The OFS includes an undersubscription acceptance clause, meaning the selling shareholder(s) will accept bids even if the total offer is not fully subscribed.

Key Points

  • OFS opened for Indian Railway Finance Corporation Limited (BSE scrip: IRFC)
  • Seller has opted for undersubscription acceptance, indicating commitment to proceed regardless of full subscription
  • OFS is available to non-retail and retail investors in their respective tranches
  • Members/brokers are required to facilitate client participation through the BSE OFS platform
  • Bids must be placed within the designated bidding window on the scheduled date(s)

Regulatory Changes

No new regulatory changes introduced. This circular follows SEBI’s existing OFS framework and BSE’s standard OFS trading mechanism.

Compliance Requirements

  • Trading members must ensure clients are informed of the OFS opening and bidding schedule
  • Bids must be placed at or above the floor price set by the seller
  • Members must comply with BSE OFS platform requirements for order entry and settlement
  • Retail investors are eligible for a reserved portion of the OFS as per SEBI guidelines

Important Dates

  • OFS Opening Date: 2026-02-25
  • Refer to the official PDF circular for specific bidding window timings, floor price, lot size, and settlement dates

Impact Assessment

This OFS represents a significant liquidity event for IRFC, a government-backed entity under the Ministry of Railways. The undersubscription acceptance clause reduces execution risk and signals seller confidence. Market participants — both institutional and retail — should monitor the floor price and lot size details. As a large-cap PSU, IRFC OFS activity typically draws broad investor interest and may influence short-term price discovery on the exchange.

Impact Justification

OFS of a major government-backed NBFC (IRFC) with undersubscription acceptance clause is a significant market event affecting retail and institutional investors; disinvestment activity in a large-cap PSU warrants high importance.