IREDA shares gain 4% after NCD fundraise gets oversubscribed by 2.65 times

Shares of Indian Renewable Energy Development Agency (IREDA) surged up to 4.2 per cent at Rs 187 per share in Monday's intraday trade

Shares of Indian Renewable Energy Development Agency (IREDA) surged up to 4.2  per cent at Rs 195.35 per share in Monday’s intraday trade. This came after the company on last Friday announced that it successfully raised Rs 1,500 crore through issuance of non convertible debentures (NCD).

The bond issuance consisted of a base issue of Rs 500 crore and green shoe option of Rs 1,000 crore. The issue received an overwhelming response from investors, being oversubscribed 2.65 times. The funds have been raised at an annual interest rate of 7.44 per cent for a tenure of 10 years and 2 months, the company said in an exchange filing. 

 

“This successful capital raising will enable us to further strengthen our efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity target by 2030,” said Pradip Kumar Das, Chairman and MD, IREDA. 

On Friday, the company also said that the credit rating agency Care Ratings has reviewed its rating for Non-Convertible Debenture (NCD) issue and upgraded IREDA’s ratings on NCDs of the company from CARE AA+; ‘Positive’ to CARE AAA; ‘Stable’. 

Recently the company was also included to the FTSE All World Index. The FTSE All-World index is an international equity index, that tracks stocks from developed and emerging markets worldwide.

The state-owned non-banking finance company reported a 33 per cent year-on-year increase in net profit for the fourth quarter ending March 31, 2024. The net profit stood at Rs 337.4 crore compared to Rs 253.6 crore in the same quarter of the previous fiscal year.

The company also recorded robust growth in Net Interest Income (NII), which surged by 35.1 per cent to Rs 481.4 crore from Rs 356.4 crore in the corresponding quarter of FY23. However, expenses for the period rose to Rs 911.96 crore from Rs 747.93 crore in the previous year.

IREDA, operating under the Ministry of New and Renewable Energy, finances projects related to new and renewable sources of energy, as well as energy efficiency and conservation initiatives.

At 12:06 AM; the stock of the company was trading 2.08 per cent higher at Rs 191.75 per share. By comparison the BSE Sensex was up 0.14 per cent at 77,320 levels.