IREDA Share Price Jumps Over 3% Amid ₹4,500 Crore QIP Plans

IREDA plans to launch its ₹4,500 crore Qualified Institutional Placement (QIP) in the current January-March quarter, as confirmed by IREDA CMD Pradip Kumar Das. While the exact details are yet to be disclosed, Das emphasised the need to maintain investor confidence as the company moves forward with the QIP.

The government, which currently holds a 75% stake in IREDA, is likely to dilute up to 7% of its stake through this initiative.

Retail Subsidiary in the Pipeline

Last year, IREDA approved the establishment of a retail subsidiary and has submitted a business plan to the Reserve Bank of India (RBI) for approval. Das stated that while the timeline depends on RBI’s decision, the company aims to begin operations by the end of this fiscal year or early next.

Das highlighted that transitioning from project loans to retail loans is a significant shift and plans to adopt a “slow but steady” approach in this area.

Asset Quality Deterioration in the December Quarter

During the December quarter, IREDA’s asset quality saw a decline:

• Gross NPA rose to 2.68% from 2.19% in September.
• Net NPA increased to 1.5% from 1.04%.

A significant portion of the ₹433 crore rise in Gross NPA came from a waste and bio-energy account slipping into non-performing assets. However, Das expects NPAs to improve in the coming quarters.

Stock Performance

IREDA share price is trading at ₹207.94, up by ₹6.79 (3.38%) as of 10:52 AM on January 13. Over the past year, the stock has surged by ₹86.19, reflecting a 70.76% increase.

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