IRFC shares rally 6% after government nod for Rs 10,000 crore deep-discount bond issue
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Shares of Indian Railway Finance Corporation climbed as much as 6.4% on Friday to Rs 138.50 on the BSE after reports that the company secured government approval to raise up to Rs 10,000 crore through deep-discount bonds. The planned issuance is part of a broader shift in the funding strategy of state-run enterprises amid evolving investor appetite and changing infrastructure financing dynamics, according to a Reuters report. The finance arm of Indian Railways received clearance to raise funds via zero-coupon, deep-discount bonds with a 10-year maturity, according to a publicly available government document dated May 14. The issuance, which must be completed by the end of March 2027, will be offered at a discount of Rs 4,916 crore to face value. Deep-discount bonds are typically issued at a significant markdown and do not pay periodic interest. Instead, investors receive the full face value at maturity, providing returns through capital a...