In Wednesday’s trading session, shares of one of the leading PSU stock under the Ministry of Railways, specializes in financing Indian Railways, jumped up to 3.5 percent after emerging as the lowest bidder (L1) for financing Rs. 3,167 crores Loan for development of Banhardih Coal Block Project.
Price action
With a market capitalization of Rs. 1,77,404 crores on Wednesday, the shares of Indian Railway Finance Corporation Limited (IRFC) is trading at Rs. 137.48 up by 3.5 percent making a high of Rs. 140.50 per share compared to its previous closing price of Rs. 135.55 per share.
What Happened
Indian Railway Finance Corporation Limited (IRFC) specializes in raising funds through debt instruments such as bonds and loans to support the Indian Railways has emerged as the lowest bidder (L1) for financing Rs. 3,167 crores Loan for the development of Banhardih Coal Block Project.
The project, led by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (74% equity stake) and Jharkhand Bijli Vitran Nigam Limited (26% equity stake), will use coal from the Banhardih block to supply fuel to PVUNL’s power plants. The coal will be transported by rail, with Indian Railways handling the logistics.
AUM Break-Up (HY1 FY 25)
In HY1 FY25, IRFC’s AUM breakup consists of Lease Receivables (34.02 percent), Project Assets (20.03 percent), and Advances against Railway Infrastructure Assets to be leased (44.98 percent) and a small portion of 0.97 percent, is loaned to RVNL and 99.03 percent of the AUM was allocated to Ministry of Railways (MoR).
Financials
The company’s revenue rose by 1.96 percent from Rs 6,767.48 crore to Rs 6900.2 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 1,549.87 crores to Rs 1,612.65 crore during the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
