Banhardih Coal Block Project deal worth ₹3,167 Cr causes stock of PSU surged by 4%
Banhardih Coal Block Project: During Wednesday’s trading session, shares of Indian Railway Finance Corporation Limited (IRFC), a leading PSU stock under the Ministry of Railways specializing in financing Indian Railways, surged by 3.5 percent after being identified as the lowest bidder (L1) for a Rs. 3,167 crore loan to support the development of the Banhardih Coal Block Project.
With a market capitalization of Rs. 1,77,404 crores on Wednesday, IRFC’s shares were trading at Rs. 137.48, marking a 3.5 percent increase from the previous closing price of Rs. 135.55 per share, reaching a high of Rs. 140.50 per share.
IRFC, known for raising funds through debt instruments like bonds and loans to aid Indian Railways, secured the financing for the Banhardih Coal Block Project. This project, led by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (74% equity stake) and Jharkhand Bijli Vitran Nigam Limited (26% equity stake), will utilize coal from the Banhardih block to supply fuel to PVUNL’s power plants. The transportation of coal will be facilitated by Indian Railways, managing the logistics efficiently.
AUM Break-Up (HY1 FY 25)
In the first half of the fiscal year 2025, IRFC’s Assets Under Management (AUM) breakdown includes Lease Receivables accounting for 34.02 percent, Project Assets at 20.03 percent, Advances against Railway Infrastructure Assets to be leased at 44.98 percent, with a small portion of 0.97 percent loaned to RVNL. The majority of 99.03 percent of the AUM was allocated to the Ministry of Railways (MoR).
Financials
During Q2FY24-25, the company experienced a 1.96 percent increase in revenue, rising from Rs 6,767.48 crore to Rs 6,900.2 crore. Additionally, net profit saw an increase from Rs 1,549.87 crores to Rs 1,612.65 crore during the same period.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.