IRFC OFS opens for retail investors today. Should you participate?

Indian Railway Finance Corporation (IRFC) shares fell over 1 percent to about 91.55 apiece on NSE as the government's offer for sale (OFS) opened for retail investors on June 25. The non-retail portion was subscribed 1.86 times at the floor price of 91 rupees, with the Centre exercising the greenshoe option to offer an additional 1 percent stake beyond the base 1 percent issue. Analysts from SMC Global Securities advise retail investors to avoid the OFS for short-term gains given weak institutional demand at the floor price, while INVasset noted the OFS is a valuation and supply event rather than a franchise deterioration.