Railway Stock, IRFC gains over 3% on signing MoU to fund RE projects for Indian Railways

Shares of the Indian Railway Finance Corporation (IRFC), a public sector financial institution of Indian Railways, rose over 3% in early trading on Friday. This increase followed the announcement that the company had signed an agreement with REMC Limited, another public sector unit, to collaborate on financing renewable energy (RE) projects.

In a press release issued late Thursday, IRFC stated that it has entered into a memorandum of understanding (MoU) with REMC to jointly finance renewable energy projects awarded by REMC for supply to Indian Railways.

The partnership will also involve exploring financing options for thermal, nuclear, and renewable power projects established under a captive model through joint ventures involving Indian Railways and other entities.

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Shares of Indian Railway Finance Corporation (IRFC) reacted positively to the announcement, climbing as much as 3.1% to reach an intraday high of Rs 156.8 during the opening trade on Friday on the National Stock Exchange of India (NSE).

The stock was trading at Rs153.33, up 0.85% on the NSE. Over the past year, IRFC shares have surged nearly 54%. The stock was recently included in the futures and options (F&O) segment on November 29 but has remained relatively flat since then. The market capitalization of the company is standing at Rs 2.01 lakh crore and dividend yield is at 0.97%.

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