IRFC was trading firm during the early session with gains above 5.5%. IRFC opened the session at Rs 140 but at the time of publication of this report, the price was trading with strong bullish momentum at Rs 146. RailTel Corporation of India was trading 3.7 percent higher at Rs 380. The stock touched intraday high of Rs 384.9 and has witnessed strong buying in today's session.

Indian Renewable Energy Dev Agency Limited (IREDA) stock was trading 2.5 percent higher at the time of publication of this report. IREDA opened the trading session at Rs 187.65 and touched intraday high of Rs 193.34. Indian Railway Catering and Tourism Corporation (IRCTC) was trading 2 percent higher as majority of PSU stocks were trading firm today.

India's public sector undertakings (PSUs) witnessed a sharp uptick in stock prices following the government's new capital restructuring norms, which include changes to dividend payouts and bonus issue policies. Meanwhile, the Indian Railways Finance Corporation (IRFC) raised Rs 1,415 crore through a 15-year bond issue at a competitive coupon rate of 7.14%, signaling continued investor interest in state-backed debt. Adding to the buzz, IRCTC launched a 6-night, 7-day budget-friendly Gujarat heritage tour package, aiming to boost tourism through its extensive rail network. These updates reflect the dynamic interplay of policy, market trends, and consumer engagement in India's economy.

PSU Stocks Surge on New Capital Restructuring Norms

Market Reaction:

Shares of PSUs rallied following changes to capital restructuring policies announced after an eight-year gap.
Top Gainers:
IRFC surged 5.5%.
BHEL rose 4.3%.
REC and PFC gained 4% each.
Key Changes in Norms:

Dividend Payouts: Central Public Sector Enterprises (CPSEs) will now pay 4% of net worth as dividends, down from 5%.
Bonus Issues: Reserve requirements have been doubled to 20 times the paid-up equity capital, compared to 10 times earlier.
Stock Splits: Market price must be 150 times the face value, with a mandatory three-year gap between two stock splits.
Broader Context:

Stocks like IRFC have declined over 35% from their peak, while defense-focused companies like Cochin Shipyard and Bharat Dynamics have seen their values nearly halve.

IRFC Raises Rs 1,415 Crore Through 15-Year Bonds

Bond Details:

IRFC raised Rs 1,415 crore through 15-year bonds at a 7.14% coupon rate.
The bond issue was scaled back from the initial Rs 3,000 crore target due to market conditions and investor demand.
Use of Proceeds:

The funds will support Indian Railways’ infrastructure projects, underscoring IRFC’s critical role in financing the country’s rail sector.
Market Trend:

The bond’s attractive rate reflects a competitive trend among state-owned enterprises, leveraging strong credit ratings (IRFC’s bonds are rated 'AAA') to secure funding at favorable yields.

IRCTC Unveils Budget-Friendly Gujarat Heritage Tour Package

Tour Details:

Named the Classical Gujarat-Ahmedabad-Vadnagar-Vadodara Ex Gorakhpur (NLR034A), this tour spans 6 nights and 7 days.
The package covers key attractions across Gujarat and offers flexible travel options in 2AC and 3AC classes.
Pricing and Accessibility:

Fares start from Rs 24,085 per person, making it an affordable option for families.
Bookings can be made through the IRCTC website or customer care, with multiple fare categories to suit diverse budgets.
Strategic Impact:

This initiative highlights IRCTC’s efforts to enhance domestic tourism while leveraging its extensive rail network.