IREDA Launches First Perpetual Bond Issue to Raise ₹1,247 Crore

Indian Renewable Energy Development Agency (IREDA) shares will be in focus on Thursday, March 20, after launching its first-ever issuance of perpetual bonds.

The state-run renewable energy financier aims to raise ₹1,247 crore through this bond issue, which carries an annual coupon rate of 8.4%, according to the company’s exchange filing.

Reason of Fundraising 

IREDA stated that the issuance of perpetual bonds is a strategic move to enhance its Tier-I capital, ensuring a stronger financial base to support India’s rapidly expanding renewable energy sector.

As a perpetual bond, the instrument has no maturity date and remains non-redeemable, while continuing to offer a fixed interest payment indefinitely.

₹24.48 Crore Tax Refund Received, ₹195 Crore More Awaited

In a separate update, IREDA announced that it has received a ₹24.48 crore refund from the Income Tax Department. The refund was granted as partial relief by the Commissioner of Income Tax (Appeals) for Assessment Year 2011-12.

Additionally, IREDA revealed that a larger refund of ₹195 crore is currently under process. This pending refund is related to similar income tax relief granted for four other assessment years.

Stock Performance and Fundraising Plans

IREDA’s share price has been on a steady rise, gaining 8.4% over the past five trading sessions. The upward momentum began after the company announced plans to increase its borrowing limit by ₹5,000 crore for FY25.

Shareholders have already approved the ₹5,000 crore fundraising plan via the Qualified Institutional Placement (QIP) route, but the company has yet to provide clarity on the launch timeline.

Despite the recent gains, IREDA’s share price remains down 32% in 2025. The stock has dropped significantly from its all-time high of ₹310 in 2024, though it still trades well above its IPO price of ₹32.

Conclusion

IREDA’s strategic fundraising through perpetual bonds and a ₹5,000 crore QIP highlights its commitment to strengthening capital for renewable energy growth.

The tax refund adds financial support, while recent stock gains signal investor optimism. However, with shares still 32% down in 2025, the company’s future performance will depend on execution and broader market trends.

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