IRFC Share Price Up Post Signing of Major Refinancing Deal with HURL

The share price of Indian Railway Finance Corporation Limited (IRFC) rose following news of a major refinancing deal.

On Tuesday, IRFC’s price hit ₹93.10, up by 4.08% from the previous close of ₹89.45. Despite the gains, the stock is still down by 6.12% over the past five trading days and by more than 16% over the past month based on the current trading price of ₹91.85.

Major Refinancing Initiative

The stock’s price advanced after the government-owned infrastructure financier and the dedicated funding arm of India’s Ministry of Railways announced that it entered into an agreement with the Hindustan Urvarak and Rasayan Limited (HURL) to refinance an existing long-term debt for up to ₹12,842 crore.

The HURL is a joint venture of the nation’s leading Public Sector Undertakings (PSUs), including the NTPC, Coal India, Indian Oil, FCIL and HFCL. It was established to revive closed fertilizer plants at Gorakhpur, Sindri and Barauni. 

In a filing submitted to the National Stock Exchange of India Limited and BSE Limited on March 23, IRFC said that the transaction is one of its largest refinancing initiatives. 

IRFC said that the deal will deliver substantial value to HURL with the competitive financing terms and an optimised repayment structure that aligns with the latter’s operational cash flows.

Supporting Agricultural Sustainability

IRFC chairman and managing director Manoj Kumar Dubey said that by supporting HURL to become financially efficient, the financier also contributes to agricultural sustainability.

HURL’s project has linkages with the railway ecosystem. The plants are connected through rail infrastructure and fertilizer movement is done in cooperation with the state-owned Indian Railways.

“IRFC is actively expanding its footprint by supporting critical infrastructure sectors that have strong linkages with the railways. This refinancing transaction with HURL reflects our whole-of-government approach, where we bring cost-effective, long-term financing solutions to strategically important sectors such as fertilizers,” Dubey said.