IREDA considers raising funds up to Rs 4,500 crore

In order to encourage sustainable development and lessen the nation’s reliance on fossil fuels, IREDA is essential. IREDA supports India’s efforts to tackle climate change and speeds up the adoption of clean energy technologies by giving financial support to renewable energy projects. Enhancing resource efficiency and lowering greenhouse gas emissions is another benefit of IREDA’s emphasis on conservation and energy efficiency projects. All things considered, IREDA’s work is crucial to accelerating India’s shift to a more ecologically friendly and sustainable energy sector. The Ministry of New and Renewable Energy (the MNRE) is in charge of IREDA, a fully owned Government of India (GoI) enterprise. Additionally, it is granted the Mini Ratna (Category-I) designation. By June 30, 2024, GoI owned a 75% share of IREDA. As a key player in the renewable energy sector, IREDA continues to play a pivotal role in facilitating investments, providing financial solutions, and supporting innovative projects that contribute to India’s clean energy transition. With the government’s continued support, IREDA is well-positioned to further accelerate the adoption of renewable energy technologies and drive sustainable development in the country.

IREDA fund raising Rs. 4500 crore: 

In an exchange filing, IREDA stated, “The Indian Renewable Energy Development Agency’s Board meeting is scheduled to be held on Thursday, August 29, 2024, among other things, to consider and approve the proposal for raising funds by way of equity share capital for an amount aggregating up to Rs. 4,500 crore in one or more tranches.”

It further stated that, subject to statutory or official approval, the fundraising may be conducted through any of the following approved channels: rights issue, preferential issue, qualified institutional placement (QIP), further public offer (FPO), or any combination of these. IREDA is looking to disburse more than Rs 30,000 crore in loans during this financial year. In 2023–24, IREDA disbursed loans worth Rs. 25,089 crore. As of March 31, 2024, IREDA’s net worth had increased by 44.2% over the previous fiscal year to Rs 8,559.43 crore.

IREDA Performance in Q1 FY25:

In Q1 FY25, the company’s consolidated net profit increased by 30% to Rs 383.69 crore from Rs 294.58 crore in Q1 FY24. Revenue from operations climbed 32% YoY to Rs 151.28 crore in Q1 FY25. IREDA’s gross NPA stood at 2.19%, while net NPAs decreased to 0.95%.

IREDA stock is 8% up today:

As per the latest update from IREDA regarding the fund raising, it is reflected instantly in today’s stock performance, with the stock reaching a high of Rs. 259.40 per share.

Conclusion: IREDA is raising funds for growth in the energy sector, and this Rs. 4500 crore will help to work towards the green sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.