IRFC shares gain 4% post signing ₹12,842 crore refinancing pact with Hindustan Urvarak and Rasayan Ltd; what you need to know

Speaking on this occasion, Manoj Kumar Dubey, Chairman & Managing Director, IRFC, said, "IRFC is actively expanding its footprint by supporting critical infrastructure sectors that have strong linkages with the railways."

"This refinancing transaction with HURL reflects our whole-of-government approach, where we bring cost-effective, long-term financing solutions to strategically important sectors such as fertilisers. By enabling financial efficiency, we are also contributing to agricultural sustainability while strengthening logistics with railways at the core," Dubey added.

Transaction details

IRFC said in its press release that this transaction represents one of IRFC’s largest refinancing initiatives and marks a significant step forward in advancing its strategic vision under IRFC 2.0, anchored in a whole-of-government approach.

The refinancing is expected to deliver substantial value to HURL through competitive financing terms and an optimised repayment structure aligned with its operational cash flows.

This will enhance financial flexibility, improve debt servicing efficiency, and free up resources for operational strengthening and future growth.

Importantly, the project has strong forward and backward linkages with the railway ecosystem. HURL’s plants are well connected through rail infrastructure, and fertiliser movement is undertaken in coordination with Indian Railways.

The company has also operationalised institutional mechanisms for seamless rail freight payments, underscoring its deep integration with the rail transport network.

About IRFC

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has played a key role in strengthening India’s rail infrastructure by mobilising long-term resources at competitive rates.

As a Navratna CPSE, IRFC is steadily expanding its role as a diversified infrastructure financier within the railway ecosystem. Its mandate now covers projects with forward and backward linkages to railways, including power generation and transmission, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, and multimodal logistics. IRFC continues to maintain a strong asset quality record with a zero-NPA portfolio," the company says.

About Hindustan Urvarak and Rasayan Limited (HURL)

Hindustan Urvarak and Rasayan Limited (HURL), a joint venture of leading PSUs including NTPC, Coal India, Indian Oil, FCIL, and HFCL, was established under the Government of India’s initiative to revive closed fertiliser plants at Gorakhpur, Sindri, and Barauni. All three plants are now operational and play a critical role in strengthening India’s domestic urea production capacity.

This transaction further reinforces IRFC’s position as a key financial partner in nation-building initiatives and demonstrates its capability to structure large-scale refinancing solutions for complex, multi-stakeholder infrastructure projects.