PSU stocks in focus: IRFC to lend ₹5,000 crore to NTPC Renewable Energy; shares edge higher

Stock Market Today: Public sector undertaking (PSU) stock Indian Railway Finance Corporation (IRFC) hogged the limelight on Wednesday, after it said it would lend ₹5,000 crore to NTPC Renewable Energy. Shares of both these state-owned stocks gained in trade.

IRFC-NTPC Green loan agreement details

IRFC in an exchange filing on March 25, after market closing hours, said that it has entered into a loan agreement with NTPC Renewable Energy, a wholly owned subsidiary of NTPC Green Energy Limited, for the financing of a rupee term loan of ₹5,000 crore, as per NTPC REL’s board approval.

The purpose of the loan agreement is to meet part of the capital expenditure for the ongoing/new capacity addition being undertaken by the NTPC Green Energy, including refinancing of loans, etc.

IRFC, NTPC Green share price movements

IRFC share price opened at ₹130.10 on the BSE on Wednesday, slightly higher than the previous day's closing price of ₹129.40. The stock price thereafter gained further to an intra-day peak of ₹131.30 despite a weak stock market trend.

IRFC share price, which had dipped to a 52-week or 1-year low of ₹108.05, has been rebounding well. The recent rebound in the market has also helped IRFC stock.

Meanwhile, NTPC Green Energy's share price also gained in trade today. The scrip opened at ₹100.93, slightly higher than the previous close of ₹100.21. Thereafter, it touched a day's high of ₹102.10.

Recently, the Board of Directors of IRFC considered and approved an interim dividend of ₹0.30 per equity share of face value of ₹10 each.

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