IRFC Shares are Under Scrutiny Following the Lending of Rs 5,000 Crore to NTPC Renewable Energy
According to an exchange filing on Tuesday, Indian Railway Finance Corporation Ltd. and NTPC Renewable Energy Ltd. have agreed to offer a rupee term loan of Rs 5,000 crore.
According to IRFC, the loan will be unsecured. “However, negative lien shall be provided with certain exceptions,” it continued. A portion of the capital expenditure for “ongoing/new capacity addition being undertaken” is being covered by the loan, according to the regulatory filing from NTPC Renewable, a subsidiary of NTPC Green Energy.
Hours after the parent company, NTPC Green, was permitted by Rajasthan Renewable Energy Corporation Ltd. to begin construction on the last stage of the 320-megawatt Bhainsara Solar PV Project in Jaisalmer, NTPC Renewable announced its credit agreement with IRFC.
While the benchmark Nifty 50 index increased by 0.04% during Tuesday’s trading session, shares of IRFC Ltd. ended the day 2.55% down at Rs 129.41 each on the National Stock Exchange. The share price has dropped 13.38% this year and 8.41% over the past 12 months. According to Bloomberg, one analyst following the firm has given the stock a “Purchase” recommendation.
On Tuesday, NTPC Green’s stock ended the day 3.48% down at Rs 100.25 per share. The stock has dropped 17.36% over the past 12 months and 21.5% this year. According to Bloomberg statistics, one of the two analysts following the business has a “Purchase” rating on the stock, while the other recommends a “Purchase.”
