TFCI Shares Surge 20% Following Block Deal and Strategic Investments

The shares of Tourism Finance Corporation of India (TFCI) have soared 20% to reach Rs 66.16 per share, up from Rs 55.14 the previous day. This surge follows a series of positive developments, including a significant block deal and strategic investments in alternative investment funds.

TFCI, a company dedicated to providing financial assistance to the tourism sector, has been in the spotlight due to multiple positive events. Over the past five years, the stock has delivered a robust return of 499%, significantly outperforming the NIFTY 50’s return of 84%.

Reason Behind the Rally

The rally in TFCI shares can be attributed to a significant block deal that took place on Friday. Ekta Halwasiya, a prominent investor, purchased around 3.75 lakh shares of the company through block trades, amounting to Rs 2.06 crore at an average price of Rs 55.14. Additionally, Halwasiya acquired another 4.5 lakh shares at an average price of Rs 55.24, totaling Rs 2.48 crore. This brings the total acquisition value to Rs 4.54 crore.

In addition to the block deal, TFCI has announced its intention to expand its business model by co-sponsoring and acting as an anchor for two Category II Alternative Investment Funds (AIFs). According to an Exchange Filing dated January 4, 2026, TFCI will invest in the Holystone Hospitality Fund, a Category II AIF focused on the hospitality sector, with a commitment of up to 5% of the total fund corpus. The company is also set to invest in the Certus Real Estate Fund, another Category II AIF, with a commitment of up to 10% of the fund's size.

These investments align with TFCI's core businesses in tourism and real estate, demonstrating the company's willingness to diversify its revenue streams and enhance its long-term growth potential. Early engagement in the investment process is expected to help TFCI secure higher-quality assets and create additional value for investors.

Financial and Other Highlights

In terms of financial performance, TFCI reported a revenue from operations of Rs 66 crores in Q2 FY26, a marginal increase of 1.6% compared to Rs 65 crores in Q2 FY25. On a quarter-over-quarter basis, the revenue grew by 3% from Rs 64 crores. The company's net profit for Q2 FY26 stood at Rs 29 crore, up 12% from Rs 26 crore in Q2 FY25. However, on a sequential basis, the net profit declined by 6.5% from Rs 31 crore.

TFCI, established in 1989, is a leading Public Financial Institution (PFI) in India. Initially focused on providing financial and advisory services to the tourism industry, the company has diversified into areas such as education, healthcare, non-banking financial companies (NBFCs), affordable housing, logistics, warehousing, renewable energy, and manufacturing. TFCI has played a crucial role in developing over 50,000 star-category hotel rooms and several landmark tourism projects across India. The company also provides advisory services to the Ministry of Tourism and various state governments, solidifying its position as a specialist lender and advisor in the tourism and infrastructure sectors of India.

Conclusion

The strategic moves by TFCI, including the significant block deal and investments in alternative investment funds, highlight the company's commitment to diversification and long-term growth. These actions are expected to enhance investor confidence and position TFCI for continued success in the dynamic tourism and real estate markets.