Two government officials told Reuters on Wednesday that the Indian government is contemplating selling part of its stock in the state-owned Indian Railway Finance Corp (IRFC) (INID.NS) in order to reach its divestment plans for the year.

The government owns little more than 86% of Indian Railways’ financial arm.

“The stake sale would take place soon,” a government official said, adding that, while the government has yet to decide on the precise amount to sell, it will try to sell up to 11% in numerous tranches.

Last month, the government sold a more-than-5% 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% public shareholding.