IREDA shares jump 5% as management targets Rs 4,500 crore QIP in Q4FY25

Over the past 3 months, shares of IREDA have declined over 11 percent

Shares of IREDA broke two-day losing streak, rising over 5 percent to Rs 212 per share on January 13 after the management provided strong guidance and outlined a target timeline of January-March for a Rs 4,500 crore qualified institutional placement (QIP).

In an interview with CNBC-TV18, IREDA's CMD Pradip Kumar Das confirmed the QIP target for this quarter but refrained from providing additional details. "Since we are planning the QIP soon, we need to remain cautious and ensure we don't lose investor confidence," Das stated.

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Last year, IREDA approved a plan to raise Rs 4,500 crore, with the government expected to dilute up to 7 percent of its 75 percent stake in the company through the QIP. The fund-raising is intended to bolster IREDA's capital base, enabling it to expand financing for renewable energy projects and accelerate India's transition to clean energy.

In its most recent quarterly update, IREDA reported a 27 percent YoY increase in net profit, reaching Rs 425 crore, while total revenue from operations rose by 36 percent YoY to Rs 1,698 crore. Net interest income also grew by 39 percent YoY to Rs 622 crore, though operating margins saw a sharp decline of 330 basis points, falling to 30.4 percent in Q3FY25.

The state-owned NBFC also saw an improvement in asset quality, with gross non-performing assets (NPAs) decreasing to 2.68 percent in the December quarter, down from 2.90 percent in the same period last year.

Over the past 3 months, shares of IREDA have declined over 11 percent, as against 4 percent drop in the benchmark Nifty 50 index.

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