IRFC shares in focus as firm raises Rs 2,981 crore via bond issue
The accepted yield for the bonds was 6.799 per cent, below the prevailing benchmark AAA public sector undertaking rate of 7.15 per cent.
- Dec 1, 2025,
- Updated Dec 1, 2025 8:55 AM IST
Indian Railway Finance Corporation (IRFC) has raised ₹2,981 crore by issuing ten-year zero-coupon bonds, reflecting robust demand in the domestic debt market. The non-banking financial company received bids exceeding ₹7,500 crore against a base size of ₹1,000 crore and a green-shoe option of ₹4,000 crore, highlighting the strong investor interest generated despite the lower pricing. The accepted yield for the bonds was 6.799 per cent, below the prevailing benchmark AAA public sector undertaking rate of 7.15 per cent. According to the corporation, "the pricing indicates its ability to secure funds at a competitive cost in the domestic debt market."
IRFC stated that the proceeds from this bond issue will be utilised to finance and refinance both ongoing and planned railway and related infrastructure projects. This strategic deployment of capital is aligned with the corporation's mandate to support critical investment in railway modernisation and expansion. The notable response from investors underscores confidence in IRFC’s financial stability and reflects the continued importance of infrastructure development within the sector.
Key developments in the railway sector include progress on India's first bullet train, which is set to cover 100 kilometres during its inaugural run in 2027, and the commissioning of the automatic train protection system Kavach on 654 kilometres of routes till September 2025. Additionally, the construction of six new Gati Shakti cargo terminals is advancing rapidly, as noted by the North East Frontier Railway. These initiatives demonstrate an ongoing focus on enhancing railway infrastructure and safety measures across the country.
Indian Railway Finance Corporation (IRFC) has raised ₹2,981 crore by issuing ten-year zero-coupon bonds, reflecting robust demand in the domestic debt market. The non-banking financial company received bids exceeding ₹7,500 crore against a base size of ₹1,000 crore and a green-shoe option of ₹4,000 crore, highlighting the strong investor interest generated despite the lower pricing. The accepted yield for the bonds was 6.799 per cent, below the prevailing benchmark AAA public sector undertaking rate of 7.15 per cent. According to the corporation, "the pricing indicates its ability to secure funds at a competitive cost in the domestic debt market."
IRFC stated that the proceeds from this bond issue will be utilised to finance and refinance both ongoing and planned railway and related infrastructure projects. This strategic deployment of capital is aligned with the corporation's mandate to support critical investment in railway modernisation and expansion. The notable response from investors underscores confidence in IRFC’s financial stability and reflects the continued importance of infrastructure development within the sector.
Key developments in the railway sector include progress on India's first bullet train, which is set to cover 100 kilometres during its inaugural run in 2027, and the commissioning of the automatic train protection system Kavach on 654 kilometres of routes till September 2025. Additionally, the construction of six new Gati Shakti cargo terminals is advancing rapidly, as noted by the North East Frontier Railway. These initiatives demonstrate an ongoing focus on enhancing railway infrastructure and safety measures across the country.