IREDA Share Price Dropped ~3% After Release of Business Update for 1HFY25

Indian Renewable Energy Development Agency (IREDA) Ltd, a leading player in the renewable energy sector, has announced a significant surge in its business performance for the April-September 2024 period of the current financial year (FY25). The company’s strategic initiatives and strong market presence have propelled its growth to unprecedented levels.

IREDA’s loan sanctions witnessed a remarkable 303% increase during the first half compared to the same period last year. The total sanctions reached an impressive ₹17,860 crore, surpassing the ₹4,437 crore sanctioned in FY24. This substantial growth underscores IREDA’s pivotal role in driving renewable energy adoption across India.

In terms of disbursements, the company demonstrated a 56% increase, disbursing ₹9,787 crore in loans during the first half of FY25. This compares favourably to the ₹6,273 crore disbursed in the corresponding period of the previous year. The accelerated disbursement rate reflects IREDA’s efficiency in supporting renewable energy projects and meeting the growing demand for sustainable financing solutions.

IREDA’s robust financial performance has translated into a significant expansion of its loan book. As of September 30, the outstanding loan book stood at ₹64,500 crore, representing a 36% growth from the year-ago quarter. This positive trend highlights IREDA’s ability to attract and retain a diverse clientele, contributing to its market leadership.

Looking ahead, IREDA is poised to further strengthen its position through a planned fundraising initiative. The company aims to raise up to ₹4,500 crore, primarily through an institutional share sale. The infusion of fresh capital will enable IREDA to capitalize on emerging opportunities and enhance its capacity to support the nation’s renewable energy goals.

With the government’s recent approval for a fresh issue of equity, IREDA is well-positioned to execute its growth strategy. The potential dilution of up to 7% of the government’s stake will provide the company with the necessary flexibility to attract strategic investors and expand its operations. On October 1, 2024, IREDA shares opened at ₹236.00 and touched the day’s low of ₹231.65 at 10:08 AM.

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.