PSU stock crashes after RBI rejects equity investment in Nepal 

The shares of this public sector enterprise fall up to 2 percent after the company, the Reserve Bank of India, has not acceded to the request of the company for equity investment for development of the Hydro Electric Power Project in Nepal. 

Price movement 

With a market capitalization of Rs 39,792.36 crore, the shares of Indian Renewable Energy Development Agency Ltd were trading at Rs 148.05 per share, decreasing around 1.10 percent as compared to the previous closing price of Rs 149.70 apiece. 

Reason for fall 

The shares of Indian Renewable Energy Development Agency Ltd have seen bearish movement after the Reserve Bank of India on March 7, did not accede to the request of the company for equity investment for the development and implementation of the 900 MW Upper Karnali Hydro Electric Power Project in Nepal. The company will again represent the RBI in this regard. 

Financial performance 

Looking forward to the company’s financial condition, revenue zoomed by 35 percent from Rs 1,253 crore in Q3FY24 to Rs 1,698 crore in Q3FY25, during the same time frame net profit magnified by 26 percent from Rs 336 crore to Rs 425 crore. 

In H1FY25, the company’s disbursements were split across key sectors: Solar Thermal/SPV (26 percent), Wind (16 percent), State Utilities – Others (18 percent), Hydro Power (11 percent), State Utilities – Genco (3 percent), Manufacturing (6 percent), Ethanol (7 percent), and Others (3 percent), reflecting a diversified lending approach. 

Renewable Energy Sector Expansion 

India aims to achieve 500 GW of renewable energy capacity by 2030, positioning IREDA as a critical player in financing these projects. The sector’s rapid growth, driven by government policies and technological advancements, ensures a robust demand for IREDA’s services. 

Diversification Plans 

IREDA plans to establish a retail subsidiary focusing on rooftop solar, electric vehicles, and other consumer segments. This diversification will help tap into emerging markets and enhance its portfolio 

New development:- 

In Oct 24, the company incorporated IREDA Global Green Energy Finance IFSC Ltd.; a WoS for retail businesses such as PM KUSUM, rooftop solar, and other B2c segments in RE and

emerging RE sectors including EVs, Energy storage, Green Technologies, sustainability, Energy Efficiency, etc 

Company profile 

IREDA is the country’s largest pure-play green finance NBFC. It offers a full suite of financial products and services for Renewable Energy (RE) projects and adjacent value chain operations such as equipment manufacture and transmission, from project conception to post-commissioning. 

Written by Abhishek Singh

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