One of the Navratna stocks engaged in providing financial assistance and support for renewable energy projects and energy efficiency initiatives in India. The stock has jumped 5.52 percent after management targets Rs. 4500 crore through Qualified Institutional Placement (QIP) in Q4 FY25.
Stock Price Movement
In Monday’s trading session, Indian Renewable Energy Development Agency Limited’s share jumped to an intraday high of 5.52 percent from the previous close of Rs. 201.20. The stock opened at Rs. 199.60 and is currently trading at Rs. 200.30, with a high of Rs. 212.30 and a low of Rs. 196.40. The market capitalization now stands at approximately Rs. 53,782.17 crore.
What Happened
Indian Renewable Energy Development Agency (IREDA) plans to raise Rs 4,500 crore through a Qualified Institutional Placement (QIP) in the January-March 2025 quarter.
The government is expected to dilute up to 7% of its 75% stake in the company. The funds will strengthen IREDA’s capital base, enabling it to finance more renewable energy projects and accelerate India’s transition to clean energy.
Lending Portfolio
As of December 31, 2024, the company reported strong growth in both sanctions and disbursements, with Rs. 13,227 crore sanctioned and Rs. 7,449 crore disbursed, marking an increase from the previous quarter.
The total outstanding loans stood at Rs. 68,960 crores, with a significant portion (76%) in the private sector and 24% from the public sector. Renewable energy sectors, particularly solar and wind power, dominate the loan portfolio, accounting for a substantial share of Rs. 17,787 crores and Rs. 10,747 crores, respectively.
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Recent quarter results and ratios
Indian Renewable Energy Development Agency Limited’s revenue has increased from Rs. 1,253 crore in Q3 FY24 to Rs. 1,698 crore in Q3 FY25, which has grown by 35.51 percent. The net profit of Indian Renewable Energy Development Agency Limited has also grown by 26.49 percent, from Rs. 336 crore in Q3 FY24 to Rs. 425 crore in Q3 FY25.
Indian Renewable Energy Development Agency Limited’s revenue and net profit have grown at a CAGR of 19.71 percent and 38.02 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 9.30 percent and 17.3 percent, respectively. The debt-to-equity ratio of the company is to be 5.85x. Indian Renewable Energy Development Agency Limited’s EPS is to be Rs. 5.71.
Shareholding pattern
In September 2024, Indian Renewable Energy Development Agency Limited had a majority stake held by the promoters at 75 percent, foreign institutional investors at 2.02 percent, domestic institutional investors at 0.35 percent, and the public at 22.62 percent.
Company Overview
Indian Renewable Energy Development Agency Limited (IREDA) is a public sector enterprise established in 1987, focusing on financing renewable energy projects and promoting energy efficiency. It operates under the Ministry of New and Renewable Energy and holds Navratna status, enhancing its operational autonomy.
IREDA provides various financial products, including project loans and refinancing options, to support renewable energy initiatives across India. In November 2023, IREDA went public with an IPO, further expanding its reach in the renewable energy sector.
Written By – Nikhil Naik
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