Navratna stock jumps over 8% after raising ₹1,247 Cr via issue of Perpetual Bonds

Navratna NBFC has launched its first-ever perpetual bonds, raising a total of Rs.1,247 crores. This move marks a significant milestone for the company, as it looks to strengthen its financial position and expand its operations. The perpetual bonds are designed to provide long-term capital, contributing to the company’s growth strategy.

Share Price Movement 

During Thursday’s trading session, Indian Renewable Energy Development Agency Ltd’s share price hit an intraday high of Rs.154.80 apiece, rising 8.15 percent from the previous close of Rs.151.87 apiece. The share has since retreated and is currently trading at Rs.150.19 per share. Over the past five years, the stock has delivered over 140 percent returns. 

What Happened 

Indian Renewable Energy Development Agency Limited (IREDA) has successfully launched its inaugural issue of Perpetual Bonds, raising Rs.1,247 crores at an annual coupon rate of 8.40 percent. 

This significant move reflects the company’s strategy to optimize its capital structure while leveraging favorable market conditions. The issuance of these Perpetual Bonds is a crucial step in strengthening IREDA’s Tier-I capital, providing a robust financial foundation to support the accelerated growth of India’s green energy infrastructure.

Management Commentary 

Commenting on the successful issuance, Shri Pradip Kumar Das, Chairman and Managing Director, IREDA, stated, “This is a historic milestone for IREDA. We extend our gratitude to investors for their enthusiastic response. Strengthening our capital base through Perpetual Bonds will enable us to scale up financing for renewable energy projects, accelerating India’s transition to a cleaner and more sustainable future.” 

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Tax Refund

IREDA has also received a refund of Rs.24.48 crores on March 19, 2025, from the Income Tax Department as partial relief granted by the Commissioner of Income Tax (Appeals) for the Assessment Year (AY) 2011-12, concerning certain disallowances. An additional refund of approximately Rs.195 crores is under process for similar relief provided by CIT (Appeals) for AYs 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19, which is yet to be received.

Financial Overview

According to its recent financial updates, IREDA Ltd reported consolidated revenue of Rs.1,698 crores in Q3 FY25, marking a 35 percent increase from Rs.1,253 crores in Q3  FY24. Similarly, the company saw a 26 percent incline in net profit to Rs.425 crores, compared to Rs.336 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 8.23 percent and a Return on Equity (ROE) of 15.47 percent. Its Price-to-Earnings (P/E) ratio stands at 26.6, higher than the industry average of 10.59. 

About the company 

The Indian Renewable Energy Development Agency (IREDA) is a public sector enterprise focused on providing financial assistance for projects related to renewable energy and energy efficiency. 

Operating under the Ministry of New and Renewable Energy, IREDA aims to promote sustainable energy solutions and has recently gained recognition as a ‘Navratna’ company, enhancing its operational autonomy and investment capabilities. 

Written by – Siddesh S Raskar

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