IREDA shares slump over 7% as it enters F&O segment; stock down 50% from peak

Recently, shareholders approved the company’s plan to raise Rs 5,000 crore via QIP

Shares of IREDA fell over 7 percent to Rs 154 on February 28 as the stock entered the Futures & Options (F&O) segment with the start of the March series. This decline comes after a strong run, with gains in four of the last five trading sessions.

With this drop, IREDA is now down 50 percent from its post-listing peak of Rs 310, reached on July 15, 2023. The stock has also lost over 20 percent in February alone, marking its steepest monthly decline since its listing in December 2023. This follows a 6 percent drop in January.

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Recently, shareholders approved the company’s plan to raise Rs 5,000 crore through a Qualified Institutional Placement (QIP), which will dilute the government's stake by up to 7 percent post-issuance. They also approved amendments to the company’s Articles of Association after IREDA was granted Navratna status.

On the earnings front, IREDA reported a strong Q3 performance, with net profit rising 27 percent year-on-year to Rs 425 crore, supported by a 36 percent jump in revenue to Rs 1,698 crore. The company also saw improvements in its cost of borrowing, which declined to 7.68 percent from 7.82 percent a year ago, while its net interest margin expanded to 3.33 percent in the quarter.

The company's total expenses for the third quarter of FY25 increased by 33.8 percent to Rs 1,160.78 crore. Meanwhile, gross non-performing assets (NPAs) declined to 2.68 percent, down from 2.90 percent in the corresponding quarter of the previous year.

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