IRFC shares rise 3% after inking MoU for renewable energy projects

Shares of Indian Railway Finance Corporation (IRFC) gained 3.1 per cent at Rs 156.80 a piece on the BSE in Friday’s intraday trade. IRFC share price surged after the company inked a Memorandum of Understanding (MOU) with REMC to collaborate on financing renewable energy projects awarded by REMCL for supply to Indian Railways. 

 

The partnership will also explore financing options for thermal, nuclear, and renewable power projects established under a captive model through joint ventures involving Indian Railways and other entities. REMC is a joint venture of the Ministry of Railways, the company said in a statement on Thursday.

 

“Under the MOU, REMCL will provide its expertise in procuring economical Conventional/Renewable power for Railways including conducting of Bidding process for setting up Renewable Energy (RE) Projects in the power sector, while IRFC will offer its financial acumen, including project appraisal and fundraising capabilities,” the company said.

 

On the financial front, IRFC reported a 2 per cent year-on-year rise in revenue to Rs 6,899.3 crore for the September quarter of financial year 2024-25, compared to Rs 6,765 crore last year. Net profit grew 4.4 per cent to Rs 1,612.6 crore in the September quarter, up from Rs 1,544.6 crore in the same period last year.

 

The company has a total market capitalisation of Rs 2.01 trillion. Its shares are trading at a price to earnings multiple of 30.51 times and at an earning per share of Rs 4.98. 

 

At 10:04 AM, the stock price of the company advanced by 1.51 per cent at Rs 154.30 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.44 per cent to

79,591.27 level.

 

Indian Railway Finance Corporation (IRFC) is a public sector entity responsible for raising financial resources for the Indian Railways' expansion and operations through capital markets and other borrowings. Majority-owned by the Government of India, IRFC operates under the Ministry of Railways.  

 

The corporation’s primary role is to fulfill a significant portion of the Indian Railways’ Extra Budgetary Resources (EBR) needs by securing funds at highly competitive rates and terms through market borrowings.