The government's offer for sale (OFS) in Indian Railway Finance Corporation (IRFC) received a strong response from institutional investors on Wednesday, with the non-retail portion getting subscribed 1.86 times. Following the robust demand, the government will exercise the greenshoe option, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said.The Centre had launched the OFS to sell up to 1% stake in IRFC, with an option to sell an additional 1% through the greenshoe option. The issue opened for non-retail investors on Wednesday, while retail investors will be able to bid on Thursday.The OFS route allows promoters to sell shares directly on the stock exchanges through a transparent bidding process. Institutional investors will participate on the first day, while retail investors can place bids on the second day, typically with an option to apply at or above the cut-off price.Part of Centre's disinvestment strategyThe share sale forms part of the government's broader strategy to gradually reduce its holdings in listed public sector enterprises while improving liquidity and ensuring compliance with Sebi's minimum public shareholding norms.IRFC has been one of the better-performing railway public sector stocks in recent years, benefiting from strong investor interest in railway infrastructure and government-led capital expenditure.About IRFCIndian Railway Finance Corporation is the dedicated financing arm of the Ministry of Railways and plays a critical role in funding the acquisition of rolling stock, railway infrastructure projects and other capital expenditure undertaken by Indian Railways.Also read: MTF hits record Rs 1.27 lakh crore as investors borrow more to buy stocks. Is it a ticking time bomb?The OFS is expected to increase the stock's free float and improve liquidity while offering investors another opportunity to participate in one of India's largest railway financing companies.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)