Shares of Indian Renewable Energy Development Agency (IREDA) rose nearly 7 percent on August 22, after the company announced plans to raise up to Rs 4,500 crore. The fundraising could be done through qualified institutional placement (QIP), a rights issue, or other methods. A board meeting is scheduled for Thursday, August 29, to consider and approve this proposal.
By 10:25 am, IREDA’s stock price increased by 6.6 percent, reaching Rs 255.1 on the National Stock Exchange (NSE). The stock has surged by 144 percent this year, significantly outperforming the benchmark Nifty 50, which has gained only 14 percent during the same period.
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IREDA, a mini Ratna firm under the Ministry of New and Renewable Energy, provides a range of financial services for renewable energy projects. These services cover the entire project lifecycle, from inception to post-completion, including equipment manufacturing and transmission-related activities.
The company made its stock market debut on November 29 last year, with a listing premium of over 56 percent. Since then, IREDA’s shares have skyrocketed, currently trading 710 percent above the IPO price of Rs 32 and up nearly 420 percent from the listing price of Rs 49.99.
In the first quarter of FY24, IREDA reported a 30 percent year-on-year increase in net profit, totaling Rs 383.69 crore. The company’s revenue from operations also grew by 32 percent year-on-year to Rs 1,502 crore, while its asset quality improved.
