Govt's IRFC share sale offer fails to get full subscription from institutional buyers

New Delhi (PTI): The government's 2 per cent share sale offer in Indian Railway Finance Corporation Ltd (IRFC) received a subdued response from institutional investors on Wednesday, with the issue failing to get full subscription.

At the close of market hours at 3:30 PM, institutional investors placed bids for over 22.34 crore IRFC shares, which is 94.98 per cent of the over 23.52 crore shares on the block for the offer for sale (OFS).

At an indicative price of Rs 104.12 apiece, institutional investors put in bids for about Rs 2,326 crore.

Retail investors will bid in the share sale on Thursday.

Shares of IRFC closed at Rs 104.55, down 4.43 per cent over previous close on BSE.

The government has proposed to sell over 26.13 crore shares or a 2 per cent stake in IRFC with a green shoe option of an equal number in the two-day OFS. The floor price was set at Rs 104 apiece.

The government currently holds an 86.36 per cent stake in railway sector PSU.