IREDA shares drop 2% as Rs 5,000 cr QIP floor price disappoints investors

In the past one month, IREDA’s share price has gained 8 percent.

Shares of Indian Renewable Energy Development Agency (IREDA) declined by 2 percent to Rs 172 per share on June 6, after the company’s board approved a fundraising plan of up to Rs 5,000 crore through a qualified institutional placement (QIP). The board set the floor price for the issue at Rs 173 per share, which is only slightly above the market price, signaling limited near-term upside.

In addition to approving the fundraising, the board also cleared the preliminary placement document and draft application form for the QIP. The appointed merchant bankers managing the QIP process include IDBI Capital Market Services Ltd., BNP Paribas, SBI Capital Markets Ltd., Emkay Global Financial Services Ltd., and Motilal Oswal Investment Advisors.

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IREDA is a government-owned financial institution that promotes, develops, and finances renewable energy and energy efficiency projects across India.

In the fourth quarter of FY2025, IREDA reported a 49 percent year-on-year increase in standalone net profit to Rs 502 crore, compared to Rs 337 crore in the same period last year. Revenue from operations for the March 2025 quarter stood at Rs 1,904 crore, marking a 37 percent increase over Rs 1,391 crore in the March 2024 quarter.

Despite strong revenue and profit growth in the final quarter, the company’s margins for the full year showed a slight decline. IREDA’s net profit margin slipped marginally to 25.14 percent in FY2025, compared to 25.22 percent in FY2024. Operating margin also declined to 31.01 percent from 33.92 percent a year ago.

In the past one month, IREDA’s share price has gained 8 percent. However, the stock remains under pressure, having fallen 20 percent so far in calendar year 2025.

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