IREDA shares jump 4% as shareholders approve to raise up to Rs 5,000 crore via QIP

So far this year, shares of IREDA have declined over 20 percent

Shares of Indian Renewable Energy Development Agency (IREDA) rallied 4 percent to Rs 178 apiece on February 25 after the company secured shareholder approval for fundraising Rs 5,000 crore through a Qualified Institutional Placement (QIP).

The proposal received a green light at the company’s 22nd Extraordinary General Meeting (EGM). According to an exchange filing, all resolutions outlined in the EGM notice were duly approved and passed as special resolutions with the requisite majority.

The fundraising will take place in one or multiple tranches and includes a dilution of the Government of India’s shareholding in IREDA by up to 7 percent post-issue.

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Addressing shareholders at the meeting, Pradip Kumar Das, Chairman and Managing Director (CMD), stated that the capital raised through QIP would enhance the company’s green financing capabilities, accelerate loan book growth, and contribute to India’s clean energy goals.

In a separate development, a recent National Stock Exchange (NSE) circular indicated that IREDA will be included in the futures and options (F&O) segment starting with the March series. This inclusion will provide traders and investors with expanded derivatives trading opportunities beginning February 28, when the March F&O series launches. The February series is set to expire on February 27.

Despite the positive momentum, IREDA’s financial performance in the recently concluded third quarter showed some challenges, primarily due to worsening asset quality.

In absolute terms, the company’s Gross Non-Performing Assets (NPAs) increased by 30.4 percent compared to the previous quarter, while net NPAs surged 53.75 percent sequentially to Rs 1,024 crore. However, on a brighter note, net interest income (NII) for the quarter recorded a 39 percent year-on-year increase, while net profit climbed 27 percent to Rs 425.4 crore.

So far this year, shares of IREDA have declined over 20 percent, underperforming benchmark Nifty 50's 5 percent decline.

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