The shares of one of the leading PSU stock under the Ministry of Railways, which specializes in financing Indian Railways, jumped up to 4 percent after emerging upon signing a lease agreement with NTPC worth ~Rs. 250 crores
Price action
With a market capitalization of Rs. 1,79,691 crores on Thursday, the shares of Indian Railway Finance Corporation Limited (IRFC) is trading at Rs. 144 up by 4 percent making a high of Rs. 145.75 per share compared to its previous closing price of Rs. 137.56 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 signed a lease agreement with NTPC worth ~Rs. 250 crores.
The agreement is for the financing of 8 BOBR rakes under the General Purpose Wagon Investment Scheme (GPWIS) of Indian Railways in the first phase. This follows the IRFC board’s approval on 8th October 2024 to finance 20 BOBR rakes for NTPC, totaling INR 700 crores.
This lease agreement was signed by senior officials from both organizations, reinforcing IRFC’s commitment to offering innovative financing solutions for infrastructure development.
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
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