The shares of Indian Renewable Energy Development Agency Limited (IREDA) are in focus on March 26 after the company announced that its board has approved the plan to raise up to Rs 30,800 crore for financial year 2025-2026. The shares of the company opened marginally higher at Rs 170 apiece, before slipping into the red.
This came days after IREDA's board decided to hike the borrowing limit for FY25 to Rs 29,200 crore from Rs 24,200 crore. The increase in borrowing will be through instruments like taxable bonds, perpetual debt instruments, term loan from banks, lines of credit from international agencies, external commercial borrowing, short terms loans from banks and more.
In an exchange filing released in the post market hours of March 25, IREDA also announced that it has raised Rs 910.37 crore through the issuance of privately placed subordinated Tier II Bonds.
IREDA raised the said amount through the issuance of privately placed subordinated tier-II bonds for a 10-year tenor at an annual coupon rate of 7.74 percent. The company said the bonds aim to tap the liquidity in the current financial market and support its borrowing plan.
IREDA said that the funds raised through the issuance of the bonds will enhance its Tier-II capital and increase its net-worth and capital to risk-weighted assets ratio (CRAR). IREDA further said that the issuance would boost the company's ability to support the country's clean energy transition through financing.
Speaking about the development, IREDA chairman and managing director Pradip Kumar Das said, "The successful raising of Tier-II capital reflects investors' strong confidence in IREDA’s financial strength and strategic vision. This will further empower us to accelerate green energy financing, aligning with the Government of India’s target to achieve 500 GW of non-fossil fuel-based energy capacity by 2030."
Earlier on March 20, the state-owned renewable energy developer had launched its first-ever perpetual bond, to raise Rs 1,247 crore. The PSU had noted that the issuance of perpetual bonds was aimed at enhancing the Tier-I capital of the company.
Geojit Financial Services has kept a 'Buy' rating on the stock, with a target price of Rs 196 per share. This implies an upside potential of nearly 15 percent from the stock's previous closing price.
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