Government plans stake sale in Indian Railways funding arm - Reports
Shares of IRFC have gained 58 per cent over the last four weeks. The stock was trading at 51.55 rupees per share at 01.42 p.m. IST on Wednesday, up 1 per cent.
Government is considering selling some of its stake in the state-owned Indian Railway Finance Corp (IRFC) (INID.NS) as it aims to meet its divestment targets for the year, two government officials told Reuters on Wednesday. The government owns a little over 86 per cent of the Indian Railways' funding arm. "The stake sale would take place soon," a government official said, adding that while the government is yet to decide the exact quantum of sale, it will aim to sell up to 11 per cent in multiple tranches.
Last month, the government sold a more-than-5 per cent stake in another state-run railways company, Rail Vikas Nigam, raising 13.66 billion rupees ($164.34 million).
So far in fiscal 2024, it has raised 56 billion rupees against a target of 510 billion rupees.
The Ministry of Finance did not immediately respond to a Reuters request for comment.
The sale would also have the added advantage of the government adhering to the regulator-mandated minimum public shareholding norms, which requires that public companies maintain at least 25 per cent public shareholding.
While state-run firms have greater leeway in this regard, the government intends to bring down its shareholding in line with the norms.
Shares of IRFC have gained 58 per cent over the last four weeks. The stock was trading at 51.55 rupees per share at 01.42 p.m. IST on Wednesday, up 1 per cent.
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