Shares of Indian Renewable Energy Development Agency (IREDA) jumped over 4 percent on March 18 after the company increased its borrowing limit by Rs 5,000 crore for the ongoing fiscal, snapping a six-day losing streak.
In an exchange filing released after market hours of March 17, IREDA said its board decided to hike the borrowing limit for FY25 to Rs 29,200 crore from Rs 24,200 crore. The increase in borrowing limit will be done 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.
IREDA shares have seen a significant fall in recent days, recording losses for for the last six consecutive sessions. The stock is currently hovering near its 52-week low of Rs 124 per share, nearly 56 percent lower than its 52-week high seen in July last year.
IREDA's financial performance in the December quarter showed challenges, primarily due to worsening asset quality. The Gross Non-Performing Assets (NPAs) in absolute terms increased by 30.4 percent compared to the previous quarter, while net NPAs surged 53.75 percent sequentially to Rs 1,024 crore. However, 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.
In February, IREDA had approved the plan to raise Rs 5,000 crore through a Qualified Institutional Placement (QIP), which is to take place in one or more tranches, leading to a dilution of government’s shareholding by up to 7 percent.
The stock had seen gains after the National Stock Exchange (NSE) included it in the futures and options (F&O) segment from the March series, providing traders and investors with expanded derivatives opportunities.
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