₹5,000 Cr Fundraise: PSU stock jumps 4% after receiving approval for raising funds via QIP

The shares of a state owned financial institution that supports the development of renewable energy and energy efficiency projects in India jumped up to 4 percent on Tuesday’s trade after getting approval from its shareholders to raise Rs 5000 Crore via QIP. 

Share Price Movement

The shares of Indian Renewable Energy Development Agency Limited (IREDA), with a market capitalization of Rs 46,869 Crores on Tuesday, reached an Intraday high of Rs 178.45 per share gaining around 3.75 percent. As of 10:15 am, the shares retreated from their day’s high and were trading at Rs 174.3 per share which was 1.3 percent higher than the previous closing price of Rs 172.01 per share. 

The shares of IREDA generated a return of 14.4 percent in the past year, and an impressive return of 245 percent since it got listed in November 2023. 

What Happened

The shareholders of IREDA have approved the Qualified Institutions Placement (QIP) proposal of the company at the 22nd Extraordinary General Meeting held on February 24, 2025. The company will raise up to Rs 5000 crore through QIP of equity shares, in one or multiple tranches. 

The company’s Board had earlier approved the fundraising plan on January 23, 2025, which includes the dilution of the Government of India’s shareholding in the company by up to 7% post-issue equity, in one or multiple tranches.

The shareholders also approved amendments in the company’s Articles of Association, which include provisions for formation of Joint Ventures and Subsidiaries in India and abroad. 

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Management Commentary

Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, highlighted the strong financial performance in FY 2024-25, with a loan book of Rs 68,960 crore, sanctions of Rs 31,087 crore, and disbursements of Rs 17,236 crore. He added that QIP funds will boost green financing, drive loan book growth, and support India’s clean energy targets.

Financials

The Company’s Revenue from Operations increased by 36 percent YoY from Rs 1,253 Crores in Q3FY24 to Rs 1,698 Crores in Q3FY25. Their PAT rose by 27 percent YoY from Rs 336 Crores to Rs 425 Crores over the same period. The company’s Operating Profit jumped 51 percent YoY from Rs 432 Crores to Rs 652 Crores. 

About the company

IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 engaged in providing financial assistance to renewable energy projects, companies, and manufacturers in India for power generation, equipment supply and fuel source projects including wind power, solar power, hydropower, biomass, co-generation and waste to energy as well as energy efficiency and conservation. 

Written By Adhvaitha Nayani

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