IRFC shares closed Thursday’s trading session at a yearly low of 103.20. The railway asset has dipped nearly 18% year-to-date and is among the least-performing equities. The stock has been in the bearish territory for over a year, as it barely experienced a price spurt.

Why Are IRFC Shares Falling?

The recent price dip in IRFC shares comes after the government announced it would reduce its stake in the company. The government intends to reduce its stake by 4%, as it currently holds 86.36% in the railway firm. The disinvestment will make them hold a stake of 82.36%, allowing retail and institutional funds to take entry positions through the Offers For Sale (OFS).

However, the OFS failed to get fully booked by institutional funds as the demand for IRFC shares is weak. It did not meet the fundraising numbers, and there was no oversubscription, leading to its price heading south on Thursday. Fears are rife that the stock could fall below the 100 mark and fall to its December 2023 lows.

Will It Fall To the 92 Level?

Watcher Guru published a story in 2024 citing an analyst that IRFC shares are enroute to falling to the 90 to 92 level. Its price was around the 140 mark during that period and barely headed north since then. The price has stagnated and mostly traded sideways for a year since then. Investors who took an entry position a year or more ago are mostly facing losses.

The analyst, named Anshul Jain, Head of Research at Lakshmishree, predicted that IRFC shares will plummet to the 90-92 level. The stock is currently on the path towards that direction and could bottom out at those levels. “Given the prevailing technical indicators, the stock is expected to decline further, with potential downside targets of ₹90 and ₹92.”