Shares of Indian Railway Finance Corporation surged 4% to the day's high of ₹102 on Monday, May 25, 2026, following the announcement of the major refinancing deal. As per Live Mint, the stock had previously gained 2.94% to an intraday high of ₹101.08 on NSE following the initial announcement. The stock has rebounded nearly 16% from its 52-week low of ₹87 hit on March 30, 2026. The broader NSE Nifty 50 was also firm, trading at 23,957, up 238 points or 1%. IRFC's market capitalisation stood at ₹1,31,364.62 crore on the NSE. IRFC CMD and CEO Manoj Kumar Dubey stated that this transaction reinforces IRFC's growing capability to structure innovative, long-tenor financing solutions for nationally significant infrastructure assets.
Indian Railway Finance Corporation has signed a ₹13,527 crore term loan agreement with L&T Metro Rail Hyderabad Ltd. to refinance the debt obligations of the Hyderabad Metro Rail Project. According to latest exchange filings, this marks one of the largest transactions in India's urban transit financing space. The deal follows the transfer of 100% ownership of L&T Metro Rail Hyderabad from Larsen and Toubro to the Government of Telangana through Hyderabad Metro Rail Limited. As reported by Live Mint, the refinancing comes after the Government of Telangana took full control of L&T Metro Rail Hyderabad from Larsen & Toubro, turning the metro system into a key public transport asset owned by the state and providing a better financial base for expanding Hyderabad's metro network. Dubey emphasized that this transaction demonstrates that large-scale urban infrastructure can be financed domestically through efficient, long-tenor funding structures aligned to project cash flows.
The facility is structured over a 20-year tenure with quarterly repayments and replaces higher-cost debt with competitively priced long-term rupee financing. As reported by Live Mint, the refinancing replaces higher-cost debt with competitively priced long-term rupee financing. The facility will refinance existing debt obligations including non-convertible debentures, commercial papers and term loans, enabling an orderly exit for existing lenders while significantly improving the project's long-term financial sustainability. IRFC confirmed the facility carries no processing fees, commitment charges or prepayment penalties. The refinancing provides much stronger financial foundation for future expansion and supports Phase-I expansion and new corridors in Hyderabad. The arrangement is designed to ease the long-term financial obligations associated with operating and maintaining a large metropolitan rail network.
Hyderabad Metro Phase I spans 69.2 km across three corridors with 57 stations and currently serves over 5 lakh passenger journeys daily. According to Live Mint, this makes it one of the world's largest metro projects developed under the PPP model and serves as a critical urban transport backbone for Hyderabad. The existing Hyderabad Metro network, which currently caters to over 5 lakh passenger journeys daily, has emerged as a critical pillar of sustainable public transportation in the city. The proposed expansion will enable the Government of Telangana to extend seamless, efficient, and environmentally sustainable metro connectivity to emerging growth corridors while further enhancing carrying capacity and improving last-mile connectivity across the metropolitan region. The transaction is backed by an unconditional and irrevocable undertaking by the Government of Telangana, a state government guarantee, and an RBI-backed direct debit mandate, providing strong credit enhancement for the project.
IRFC announced that this ₹13,527 crore refinancing deal marks a significant step in its strategic plan to expand financing into wider infrastructure sectors beyond conventional railway assets. As per Live Mint, the company stated that the agreement marks another significant step in the calibrated diversification of its financing portfolio beyond conventional railway assets into high-impact public utility infrastructure with strong national development relevance. The financing support marks a significant step in strengthening Hyderabad's urban mobility infrastructure. The refinancing is expected to materially strengthen the project's financial flexibility, enabling the Government of Telangana to accelerate the planned expansion of Hyderabad's metro network, including new corridors and enhanced connectivity. The transaction also establishes a replicable financing framework for urban transit systems across the country as India accelerates investment in sustainable mobility and integrated urban infrastructure.
