Here's why IRFC share price was buzzing in trade on October 09; details

IRFC share price: Indian Railway Finance Corporation (IRFC) share price was buzzing in trade on Wednesday, October 9, 2024. The IRFC scrip rose up to 2.60 per cent to hit an intraday high of Rs 155.75 per share.

The rise in IRFC share price came after the company announced that the Board has approved financing up to Rs 700 crore under the finance lease for 20 BOBR rakes procured under the General-Purpose Wagon Investment Scheme (GPWIS) of the Ministry of Railways for NTPC. 

In an exchange filing, IRFC said, “The Board of Directors of the Company at its meeting approved financing of 20 BOBR Rakes procured under the General-Purpose Wagon Investment Scheme (GPWIS) of Ministry of Railways to NTPC for an amount up to Rs 700 crore under Finance Lease.

The Board has also approved the appointment of Ajoy Choudhury as Chief Risk Officer on fixed tenure basis for two years.

IRFC financial performance

In Q1FY25, IRFC’s net profit grew 1.65 per cent to Rs 1,576.8 crore, as against Rs 1,551.3 crore in Q1FY24. Total revenue from operations rose 1.4 per cent annually to Rs 6,765.6 crore in the quarter ended 30 June 2024.

IRFC, established in December 1986, is the dedicated funding arm of Indian Railways. Its primary objective is to mobilise funds from domestic and international markets to support the Extra Budgetary Resources required for the expansion and operation of Indian Railways. 

By borrowing from financial markets, IRFC acquires assets that are then leased to Indian Railways, ensuring a steady flow of resources for infrastructure development.

Governed by the Ministry of Railways, IRFC is predominantly owned by the Government of India. It raises capital through a variety of sources, including term loans and bonds, enabling it to fulfil the financial needs of one of the largest railway networks in the world.

The market capitalisation of IRFC is Rs 2,01,385.68 crore, according to BSE. The company falls under the BSE 200 category. 

At 9:53 AM, IRFC shares were trading 1.52 per cent higher at Rs 154.10 per share. In comparison, BSE Sensex was trading 0.28 per cent higher at 81,866.90 levels.