IREDA Share Price Gain 8% in 5 Days Amid ₹30,800 Crore Borrowing Plan

Indian Renewable Energy Development Agency (IREDA) shares surged 8% in 5 trading sessions before falling 2% to ₹166.55 on Wednesday. The rally was driven by the company’s announcement of a major borrowing plan and successful fundraising efforts.

IREDA’s ₹30,800 Crore Borrowing Plan

IREDA’s board has approved a borrowing program of ₹30,800 crore for FY 2025-26. The company plans to raise funds through various financial instruments, including taxable and green taxable bonds, subordinated Tier-II bonds, perpetual debt instruments, public and private placement of tax-free bonds, and capital gains tax bonds. Additionally, it will explore Green Masala Bonds, foreign currency bonds (USD/EUR/JPY), and external commercial borrowings (ECB) to support its funding needs.

Successful Fundraising Through Bonds

IREDA recently raised ₹910.37 crore through the issuance of privately placed Subordinated Tier-II Bonds. These bonds have a 10-year tenure and offer an annual interest rate of 7.74%. The company’s Chairman and Managing Director, Shri Pradip Kumar Das, highlighted that this successful fundraising reflects strong investor confidence in IREDA’s financial strength and long-term strategy. The additional capital will help accelerate green energy financing, supporting India’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.

Q3 Financial Performance

IREDA reported strong financial results for Q3 FY25, with net profit rising 27% year-on-year to ₹425.38 crore, compared to ₹335.53 crore in the same quarter last year. The company’s revenue saw significant growth, increasing by 35.6% YoY to ₹1,698.45 crore from ₹1,252.85 crore in Q3 FY24. This robust performance indicates IREDA’s growing role in the renewable energy sector.

IREDA Share Price Performance

The share price of IREDA has shown mixed trends over different time periods. In the last 5 days, the IREDA share price has gained 8%, while in the past month, it has increased by 2%. However, over the last 6 months, the stock has declined by 24%. Despite this short-term fall, it has delivered over 20% returns to investors in the past year.

With strong financial backing and a clear focus on green energy financing, IREDA continues to strengthen its position in India’s renewable energy sector.

Conclusion

IREDA’s strong financial performance and strategic fundraising efforts highlight its commitment to green energy financing. Despite recent stock fluctuations, its long-term growth outlook remains positive.

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