IREDA stock soars 6% on Q1 business update; up 525% from IPO price

IREDA is a wholly-owned Central government enterprise under the administrative control of the ministry of new and renewable energy (MNRE)

Shares of Indian Renewable Energy Development Agency (IREDA) surged over 6 percent in morning trading on July 1 as the company reported a 382.62 percent year-on-year (YoY) increase in loan sanctions for the June 2024 quarter, totaling Rs 9,136 crore compared to Rs 1,893 crore a year earlier.

The company's loan disbursements also rose 67.61 percent YoY to Rs 5,320 crore from Rs 3,174 crore in the June 2023 quarter. The firm's outstanding loan book grew to Rs 63,150 crore in Q1FY25, up 33.77 percent from Rs 47,207 crore a year ago.

At 10:04 am, IREDA stock was trading over 3 percent higher at Rs 197.48 on the National Stock Exchange (NSE). So far this year, the stock has zoomed 88 percent, beating Nifty's return of 10 percent by a huge margin.

IREDA is likely to raise equity capital through a Follow-on Public Offer (FPO), subject to the government's consent, the company's management told CNBC-TV18 in an interaction today.

The FPO is likely to take place between November this year and February next year as the company needs an equity infusion again.

IREDA IPO was launched in November last year. The company issued its equity shares at Rs 32 apiece in the primary market. The stock had a stellar debut as it listed at a premium of 56.25 percent over the IPO issue price.

The PSU stock touched an all-time high of Rs 215 earlier this year on February 6. Currently, the multibagger stock is trading 525 percent above the issue price.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE).

It has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.