IREDA Share Price Jumps Over 8%, Hits 3-Week High, Gains 21% in March

Indian Renewable Energy Development Agency (IREDA), a key government-owned green finance NBFC, saw its stock surge for the second straight session on March 24, gaining 8.4% to reach ₹167.90. This marks its highest level in 3 weeks, driven by strong trading volumes.

Strong Weekly Gains and Fundraising Efforts

IREDA share price rose nearly 11% last week, recording its biggest weekly gain of 2025 so far. The rally comes after the company launched its first-ever perpetual bonds to raise ₹1,247 crore at an annual interest rate of 8.40%. This move aims to strengthen its capital structure while taking advantage of favourable market conditions.

Income Tax Refund and Pending Dues

The company also received a partial tax refund of ₹24.48 crore from the Income Tax Department for the assessment year 2011-12. Additionally, IREDA expects a further refund of around ₹195 crore for multiple assessment years, which is still being processed.

Board Meeting on Borrowing Plans

IREDA informed the stock exchange that its board will meet on March 25, 2025, to discuss its borrowing plans for the financial year 2025-26.

Stock Recovers But Still Far From Peak

After a sharp decline over the past 7 months, IREDA’s shares have rebounded by 21% in March. However, they remain 46% below their peak of ₹310. The stock had surged nearly 10 times from its IPO price of ₹32 to ₹310 in July 2024, but high valuations, regulatory hurdles, and weak earnings led to a correction.

Challenges Affecting Stock Performance

Several factors contributed to the stock’s decline:

• RBI Restrictions: RBI rejected IREDA’s request to invest in the 900 MW Upper Karnali Hydroelectric Power Project in Nepal. 
• Weak Q3 Financials: The company’s poor December quarter results impacted investor confidence. 
• Gensol Engineering Exposure: Investors are concerned about IREDA’s financial exposure to Gensol Engineering, a solar plant construction firm. 
• Renewable Energy Sector Concerns: The broader renewable energy industry has faced challenges in early 2025, including worries about potential U.S. tariffs under President Donald Trump’s administration. 

About IREDA

Established in 1987, IREDA is a non-banking financial company (NBFC) focused on providing financial solutions for renewable energy projects, energy efficiency, and environmental sustainability. It operates under the Ministry of New and Renewable Energy (MNRE) and is wholly owned by the Government of India.

Conclusion

While IREDA’s stock is recovering, it remains well below its peak due to regulatory hurdles and weak financials. Investors will watch the upcoming board meeting for future growth plans.

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