The Indian government is mulling to sell some of its stake in state-owned Indian Railways Finance Corp (IRFC) through an offer for sale (OFS) in the current fiscal year, official sources were quoted as saying by PTI.

The Indian government currently holds 86.36% stake in the financing arm of the Indian Railways. As per PTI report, an inter-ministerial group (IMG) having senior officers from the Department of Investment and Public Asset Management (DIPAM) and the Railways Ministry has started consultations to decide on the quantum of stake dilution.

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The government is likely to dilute 11.36% stake in IRFC, to make the central public sector enterprise compliant to Sebi's minimum public shareholding (MPS) norm. As per MPS norm, a listed entity must have a minimum public float of 25% within five years of listing.

"We are assessing investor appetite before deciding on the quantum of dilution," PTI reported quoting the official. As per current market price, the sell off would fetch the government around Rs 76,000 crore.

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The government had listed IRFC on stock exchanges in January 2021. The share sale consisted of fresh issue of shares by the company and an additional 4.55% stake dilution by the government.

Shares of IRFC were trading at ₹50.97 a share, up 0.14% over previous close on BSE. IRFC reported a net profit of ₹1,557 crore in the quarter ended June, against 6% down from 1,660 crore in the corresponding quarter last fiscal.