IRFC shares jump 3% on signing MoU with REMCL to finance renewable energy projects

Indian Railway Finance Corporation (IRFC) shares jumped 3% to their day’s high of Rs 156.80 on the BSE after signing a Memorandum of Understanding (MoU) with Railway Energy Management Company Ltd (REMCL), a joint venture between the Ministry of Railways and RITES.

The collaboration aims to finance renewable energy projects awarded by REMCL to supply power to Indian Railways. Under the MoU, IRFC will explore financing options for renewable, thermal, and nuclear power projects developed under a captive model through joint ventures involving Indian Railways and other stakeholders.

This MoU sets the foundation for cooperation between IRFC and REMCL to advance Indian Railways' goal of minimising reliance on fossil fuels and achieving net-zero carbon emissions by 2030. The collaboration aims to harness renewable energy sources for the railway sector.


Under the MOU, REMCL will provide its expertise in procuring economical conventional/renewable power for Railways including conducting of bidding process for setting up renewable energy projects in the power sector, while IRFC will offer its financial acumen, including project appraisal and fundraising capabilities.

For IRFC, this MoU marks a strategic step toward diversifying its business model while maintaining its critical role in the development of Indian Railways. The partnership aligns with the government's vision of delivering world-class, efficient, and environmentally sustainable transportation solutions for the nation.

Also Read: Zomato's dream run on D-Street may hit a bump or two

IRFC shares target price

As per Trendlyne data, the average target price of IRFC shares is Rs 50, which indicates a downside of 67% from the current market prices. The consensus recommendation from one analyst for the stock is a 'Strong Sell'.

Also Read: Bajaj Finserv and Bajaj Finance soar on rating upgrades

IRFC shares performance

On Thursday, IRFC shares closed at Rs 152, up 1.13% on the BSE, while the benchmark Sensex rallied 1.83%. The stock has surged 52% in the past 12 months and 362% over the past two years, with the company’s market capitalization now at Rs 1,98,641 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)