Indian Railway Fin.

By Nikunj Ohri

NEW DELHI, Aug 7 (Reuters) - India expects to exceed this fiscal year's goal of raising 800 billion rupees ($8.4 billion) through the sale of stakes in state-run firms and other asset monetisation methods, government sources said, helping public finances strained by the Middle East conflict.

The U.S.-Israeli war on Iran has driven up fertiliser import costs and fuel subsidies, sparking concern that the government could fall short of its budget goals. India has often missed its target for divestments and asset monetisation in recent years.

The government this week completed the sale of shares worth 315.5 billion rupees ($3.3 billion) in state-owned Life Insurance Corporation (LIC), its biggest divestment in years. Combined with sales of shares in firms such as Coal India and Indian Railway Finance Corp, more than $5.5 billion has been raised to date.

According to one of the sources, the long-delayed sale of the government's stake in IDBI Bank should also conclude this fiscal year, potentially adding $2.5 billion to state coffers.

Moreover, Finance Minister Nirmala Sitharaman has given quarterly targets to the ministry's divestment department to boost stake-sale receipts, the second source said.

The sources were not authorised to speak to media and declined to be identified. India's finance ministry did not respond to a request for comment.

The government launched an ambitious privatisation drive in 2021, but progress has been slower than initially envisaged, with only a handful of strategic sales completed.

Officials have increasingly relied on sales of smaller stakes in listed state-run companies, which are easier to execute and carry lower political and regulatory risk, the first source said.

FISCAL PRESSURES

Increased oil import costs for India, the world's third-largest crude importer, have raised concerns about a possible widening of the fiscal deficit and current account gap.

The government is targeting a fiscal deficit of 4.3% of GDP this fiscal year. But a 37% jump in subsidy spending for the April-June first quarter from the same period a year earlier has led some analysts to warn that the government will fail to meet its goal.

Overall government expenditure for the quarter rose 11%, government data shows.

The government may need additional measures to meet its deficit target, said N.R. Bhanumurthy, director of the Madras School of Economics.

"Compared with previous years, the rise in divestment receipts is a positive trend. However, the government will need to mobilise more revenue this year, as fuel tax cuts alone have cost the exchequer more than 1 trillion rupees," he said.

Sitharaman said last month there were no immediate plans to revise budget estimates.

DIVIDEND BOOST

Dividends received by the government from the Reserve Bank of India, state-run banks and financial institutions have already hit 3.24 trillion rupees for April 1 to August 5, exceeding the 3.16 trillion rupees initially expected for the whole of this fiscal year.

The RBI contributed a record 2.87 trillion rupees. The government expects non-financial state-run companies to pay 750 billion rupees in dividends this fiscal year. It has received 25.5 billion rupees so far.

There have been no major asset monetisation announcements yet. Asset monetisation can include selling land or creating infrastructure investment trusts that hold government-owned infrastructure assets.

($1 = 95.1650 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Ira Dugal and Edwina Gibbs)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

July 30 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC JUNE-QUARTER PROFIT 19.27 BILLION RUPEES

• IRFC JUNE-QUARTER TOTAL REVENUE FROM OPERATIONS 82.61 BILLION RUPEES

Source text: ID:nNSEb9NlND

Further company coverage: INID.NS

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June 30 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - APPOINTMENT OF DEEPA KOTNIS AS CFO

Source text: ID:nBSE9RCcTz

Further company coverage: INID.NS

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** Shares of Indian Railway Finance Corp INID.NS fall 5.7% to 93.05 rupees, set for biggest pct drop since February 2025

** Indian government announces up to 2% stake divestment via offer-for-sale (OFS) in the railway financing co

** Floor price of OFS at 91 rupees, discount of nearly 8% to stock's closing price on Tuesday

** Stake sale part of Indian govt's 800 billion rupee ($8.44 billion) divestment and asset monetization target for fiscal year 2027; govt had tried to sell up to 4% of co in February but could offload only 1.71%

** Stock top pct loser on Nifty PSE index .NIFTYPSE, which is down 0.24%

** INID down 25% YTD

($1 = 94.8425 Indian rupees)

(Reporting by Abhirami G in Bengaluru)

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The Government of India, acting through the Ministry of Railways, will sell up to 2 per cent of its stake in Indian Railway Finance Corporation through an offer for sale on June 24 and 25. The base sale is 130.7 million shares, with an equal over-subscription option, at a floor price of ₹91 per share. The transaction is designed to bring IRFC into compliance with the mandated 25 per cent minimum public shareholding rule. Goldman Sachs India Securities is the sole broker for the deal, with no discount offered to retail or employee bidders.

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June 23 (Reuters) - India on Tuesday said it would divest up to a 2% stake in Indian Railway Finance Corp INID.NS via an offer for sale (OFS).

• The Indian government will sell 1% equity in the financier, with an option to sell an additional 1% based on investor response, the divestment secretary said in a post on social media platform X.

• The offer will open for non-retail investors on Wednesday and for retail investors on Thursday.

• An OFS allows promoters or large shareholders of listed companies to sell shares through stock exchanges.

• India's Union Budget set a divestment and asset monetisation target of 800 billion Indian rupees ($8.44 billion) for fiscal year 2027.

• In February, the government had proposed to sell up to a 4% stake in Indian Railway Finance Corp, but could offload only 1.71% shareholding. It holds an 84.65% stake in the financier.

($1 = 94.7350 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Joyjeet Das)

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May 25 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - IRFC SIGNS 135.27 BILLION RUPEES REFINANCING DEAL FOR HYDERABAD METRO

Source text: ID:nBSE5smMG0

Further company coverage: INID.NS

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May 22 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• SIGNED LOAN AGREEMENT FOR RAISING EXTERNAL COMMERCIAL BORROWING LOAN OF JPY EQUIVALENT USD 1.1 BILLION

• SIGNED AGREEMENT WITH CONSORTIUM OF SBI, HDFC BANK, SUMITOMO MITSUI BANKING CORP, DBS BANK

Source text: ID:nBSE2cssdj

Further company coverage: INID.NS

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May 14 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC MARCH-QUARTER PROFIT 16.84 BILLION RUPEES

• IRFC MARCH-QUARTER TOTAL REVENUE FROM OPERATIONS 73.36 BILLION RUPEES

Source text: ID:nnAZN4SW81R

Further company coverage: INID.NS

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March 23 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - SIGNS TERM LOAN AGREEMENT WITH HURL FOR 128.42 BILLION RUPEES REFINANCING

Source text: ID:nBSE8PGszg

Further company coverage: INID.NS

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March 9 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - DIVIDEND OF 1.05 RUPEES PER SHARE

• IRFC - APPROVES FUND RAISING UP TO 700 BILLION RUPEES

• IRFC - RAISING OF FUNDS UP TO 700 BILLION RUPEES FOR FINANCIAL YEAR 2026-27

Source text: ID:nBSE8J1F7J

Further company coverage: INID.NS

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March 2 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• INDIA GOVERNMENT'S STAKE IN CO REDUCED TO 84.65% FROM 86.36% AFTER OFFER FOR SALE

Source text: ID:nBSE5nWlBG

Further company coverage: INID.NS

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Feb 25 (Reuters) - India will not exercise the oversubscription option for the Indian Railway Finance Corp offer-for-sale after the base offer did not receive full bids on the first day, an exchange filing showed on Wednesday.

Here are some details:

• India said on Tuesday it would divest an up to 4% stake in Indian Railway Finance Corp through an offer-for-sale, including a 2% base offer and an additional 2% via the oversubscription option.

• The Indian government currently owns an 86.36% stake in the financing arm of the Indian Railways.

• The floor price for the OFS was set at 104 rupees, implying a 5% discount to the stock's closing price on Tuesday.

• The oversubscription option allows the seller to potentially sell more shares than the base offer if investor demand is higher than expected.

• The sale opened on Wednesday to non-retail investors and recorded an under-subscription of 11.8 million shares for the base issue.

• The government said the total offer size would remain the same as the base offer size of a 2% stake.

• Of the offer size, 14.52% will be available for bids by retail investors on Thursday.

(Reporting by Mridula Kumar and Nishit Navin in Bengaluru; Editing by Shilpi Majumdar)

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Feb 24 (Reuters) -

• INDIA DIPAM SECY: OFFER FOR SALE FOR INDIAN RAILWAY FINANCE CORP OPENS FEB 25 FOR NON-RETAIL INVESTORS

• INDIA DIPAM SECY: GOVERNMENT OFFERS TO DISINVEST 2% EQUITY IN IRFC WITH ADDITIONAL 2% AS GREEN SHOE OPTION

• INDIA DIPAM SECY: OFFER FOR SALE FOR IRFC OPENS FOR RETAIL INVESTORS ON FEB 26

Further company coverage: INID.NS

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Feb 3 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - SIGNS STRATEGIC MOU FOR TUTICORIN PORT DEVELOPMENT

Source text: ID:nBSE7ZWHTX

Further company coverage: INID.NS

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Jan 19 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• INDIAN RAILWAY FINANCE CORP STANDALONE DEC-QUARTER PROFIT 18.02 BILLION RUPEES

• INDIAN RAILWAY FINANCE CORP STANDALONE DEC-QUARTER TOTAL REVENUE FROM OPERATIONS 66.61 BILLION RUPEES

Source text: [ID:]

Further company coverage: INID.NS

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Aug 21 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC EXECUTES REFINANCING FOR BHARTIYA RAIL BIJLEE COMPANY

Source text: ID:nNSE8SXG6p

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By Dharamraj Dhutia

MUMBAI, June 16 (Reuters) - Three Indian state-run companies are likely to delay raising funds through deep-discount zero-coupon bonds as investor appetite has weakened, three merchant bankers said.

State-run Indian Railway Finance Corp INID.NS, Housing and Urban Development Corp HUDC.NS and REC RECM.NS were set to test the market but have been advised by their bankers to hold off, they said.

"We have advised companies to wait for at least two to three months, because under the current scenario, there is no appetite for these bonds," one of the bankers said.

The bankers requested anonymity as they are not authorised to speak to media. None of the companies replied to Reuters' emails seeking comment.

Deep-discount bonds are typically issued at a discount of over 20%-25% to their face value and do not pay interest.

Last Monday, Power Finance Corp was forced to withdraw its planned deep-discount bond issue for the second time in under six weeks due to weak demand.

"The recent pickup in yields and escalating geopolitical situation in the Middle East will further sway investors away from these instruments for the time being," said Umesh Khandelwal, chief business officer at bond arranger Tipsons Group.

Refinitiv benchmark AAA-rated 10-year corporate bond yield has risen nearly 20 basis points since the central bank changed its policy stance to "neutral" from "accommodative" on June 6.

Market participants have highlighted concerns of excess supply as the Indian government has approved issuance of such bonds worth 495 billion rupees ($5.6 billion) and more state-run companies are expected to get the go-ahead. The firms have to raise these funds by March 2027.

A lack of liquidity in the secondary market and losses faced by investors of an issuance by REC are also acting as deterrents, traders said.

In September 2024, REC raised 50 billion rupees through deep-discount bonds at a yield of 6.25%.

Companies that have received approval to issue deep-discount bonds:

($1 = 86.0400 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

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April 28 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• MARCH-QUARTER NET PROFIT 16.82 BILLION RUPEES

• MARCH-QUARTER TOTAL REVENUE FROM OPERATIONS 67.23 BILLION RUPEES

• APPROVED RAISING OF RESOURCES FOR FY 2025-26 UP TO 600 BLN RUPEES

Source text: [ID:]

Further company coverage: INID.NS

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MUMBAI, April 24 (Reuters) - Indian Railway Finance Corp INID.NS (IRFC) has accepted bids worth 30 billion rupees ($351.24 million) for bonds maturing in five years, three bankers said on Thursday.

The company will pay an annual coupon of 6.78% on this issue and had invited coupon and commitment bids from bankers and investors earlier in the day, they said.

IRFC did not reply to a Reuters request for comment.

Here is the list of deals reported so far on April 24:

*Size includes base plus greenshoe for some issues

($1 = 85.4120 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

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MUMBAI, April 23 (Reuters) - Indian Railway Finance Corp INID.NS (IRFC) plans to raise 30 billion rupees ($351.96 million), including a greenshoe option of 25 billion rupees, through the sale of bonds maturing in five years, three bankers said on Wednesday.

The company has invited coupon and commitment bids from bankers and investors on Thursday, they said.

IRFC did not reply to a Reuters request for comment.

Here is the list of deals reported so far on April 23:

*Size includes base plus greenshoe for some issues

($1 = 85.2380 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

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Updates throughout

By Khushi Malhotra and Dharamraj Dhutia

MUMBAI, April 22 (Reuters) - At least six Indian state-run companies have sought government approval to issue deep-discount bonds, opting for a rarely used corporate bond structure to raise relatively cheaper funds, four sources aware of the matter said on Tuesday.

These companies are Indian Railway Finance Corp (IRFC) INID.NS, Indian Renewable Energy Development Agency (IREDA) INAR.NS, Power Grid Corp of India (PGC) PGRD.NS, REC RECM.NS, SIDBI and NABARD, the sources said.

REC has yet again sought permission to issue these bonds, after having raised 50 billion rupees ($587 million) similarly in September, when aggressive bids led to lower-than-expected yields.

REC confirmed the development but none of the other firms replied to Reuters emails seeking comment.

Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks.

The surge in interest from companies to raise funds via these bonds is because they reduce overall borrowing costs in an environment when interest rates are seen falling further.

For investors, these bonds, though not tax-free, offer a significant long-term capital gains benefit. That, along with the rarity of such issues, is boosting demand for such notes, bankers said.

"At maturity, investors receive a profit which is taxable as per capital gains rates. This helps reduce the effective tax rate for investors making zero-coupon bonds attractive," said Nikhil Aggarwal, founder and CEO of online bond trading platform Grip Invest.

Last week, Housing and Urban Development Corp (HUDCO) HUDC.NS became the third state-run company to get approval to issue these bonds.

"HUDCO was the most likely candidate and they have got the approval and we expect REC and IRFC to be the next likely candidates," one of the sources said.

The sources said the government's approval may come in phases as they are not comfortable with a surge in the supply of zero-coupon bonds. The sources refused to be identified as they are not authorised to speak to the media.

HUDCO got approval to raise 50 billion rupees through bonds with a maturity of 10 years and one month, while Power Finance Corp (PFC) PWFC.NS was approved to raise 100 billion rupees in March. Both have until the end of March 2027 to raise these funds.

($1 = 85.1780 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Savio D'Souza)

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April 21 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• INDIAN RAILWAY FINANCE CORP LTD - BOARD TO CONSIDER MARKET BORROWING PROGRAMME FOR FY 2025-26

Further company coverage: INID.NS

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April 16 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• MADRAS HIGH COURT SETS ASIDE GST DEMAND ORDER OF 2.31 BILLION RUPEES

Source text: ID:nBSE8gXY1P

Further company coverage: INID.NS

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MUMBAI, March 26 (Reuters) - Indian Railway Finance Corp (IRFC) INID.NS has accepted bids worth 30 billion rupees ($349.7 million), including a greenshoe option of 25 billion rupees, through the sale of bonds maturing in 10 years and one month, three bankers said on Tuesday.

The company has invited coupon and commitment bids from bankers and investors on Wednesday, they said.

IRFC did not reply to a Reuters request for comment.

Here is the list of deals reported so far on March 26:

*Size includes base plus greenshoe for some issues

($1 = 85.7910 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]))

March 25 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC ENTERS LOAN AGREEMENT WITH NTPC REL

• LOAN AGREEMENT SIZE IS 50 BILLION RUPEES

Source text: ID:nBSEbnmgjD

Further company coverage: INID.NS

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March 17 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC - DIVIDEND 0.80 RUPEES PER SHARE

Source text: ID:nnAZN3K8HV3

Further company coverage: INID.NS

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MUMBAI, Feb 12 (Reuters) - Indian Railway Finance Corp (IRFC) has accepted bids worth 30 billion rupees ($345.28 million) for bonds maturing in 15 years, three bankers said on Wednesday.

The company will pay an annual coupon of 7.28% on this issue and had invited coupon and commitment bids from bankers and investors earlier in the day, they said.

IRFC did not reply to a Reuters request for comment.


Here is the list of deals reported so far on February 12:

* Size includes base plus greenshoe for some issues

($1 = 86.8850 Indian rupees)

(Reporting by Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]))

MUMBAI, Feb 10 (Reuters) - Indian Railway Finance Corp INID.NS (IRFC) plans to raise 30 billion rupees ($343.17 million), including a greenshoe option of 25 billion rupees, selling bonds maturing in 15 years, three bankers said on Monday.

The state-run company has invited coupon and commitment bids from bankers and investors on Wednesday, the bankers said.

The company did not immediately reply to a Reuters request seeking comment.

Here is the list of deals reported so far on February 10:

*Size includes base plus greenshoe for some issues

($1 = 87.4200 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

(([email protected]))

Jan 20 (Reuters) - Indian Railway Finance Corp Ltd INID.NS:

• IRFC DEC-QUARTER PROFIT 16.31 BILLION RUPEES

• IRFC DEC-QUARTER TOTAL REVENUE FROM OPERATIONS 67.63 BILLION RUPEES

Source text: ID:nBSE9qKKJC

Further company coverage: INID.NS

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