State-owned Indian Renewable Energy Development Agency (IREDA) is considering a fundraise of up to Rs 4,500 crore. It has also informed the exchanges on its upcoming board meet next week to consider the same.
Ireda Chairman and Managing Director Pradip Kumar Das in a recent interview to CNBC Awaaz hinted at a "natural percentage dilution" by the Government of India due to its Rs 4,500 crore fundraise.
The green financing NBFC has sought a 10 percent dilution from the government of India, Das told the CNBC Awaaz.
IREDA needs prior approval from the Government of India on its plans and the company has submitted its proposals on the same to the Department of Investment and Public Asset Management (DIPAM) accordingly, Das said.
It is considering fundraise through Qualified Institutional Placement (QIP), right issue or other means. A board meeting in this regard will be held on Thursday, August 29, to take up the proposal for approval.
India has an ambitious target of achieving 500 GW of renewable energy by 2030 and to achieve the target, about 50 GW of capacity needs to be added per year. In such a situation, raising funds is important for the company.
IREDA's stock made a stellar debut on the bourses in November 2023 with a premium of more than 56 percent against the issue price of Rs 32. The stock listed at Rs 50, up 56.25 percent from the issue price on both the BSE and NSE. It touched an all-time high of Rs 310 on July 15 this year, rising a whopping 520 percent from its listing price. Currently, the multibagger PSU stock is trading at Rs 260 apiece, up nearly 420 percent above the IPO price.
The company is a mini Ratna firm under the administrative controls of the Ministry of New and Renewable Energy. The IREDA stock has skyrocketed since its listing with the stock rising nearly 150 percent in 2024 so far.
The organisation offers a comprehensive array of financial products associated services, from project inception to post-completion, for renewable energy projects. It reported over 30 percent growth in its net profit to Rs 383.69 crore for the June quarter, marking an impressive year-on-year growth of 30.25 per cent.
The loan sanction also increased to Rs 9,210.22 in the first quarter of the fiscal from Rs 1,892.45 crore a year ago· The loan disbursement also increased Rs 5,325.88 crore in the quarter against 3,173.27 crore. The loan book also increased to Rs 63,206.78 crore from Rs 47,206.66 crore in the year-ago period.
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