IREDA stock jumps on ₹4,500 crore fundraise plan

22 Aug 2024 , 12:50 PM

Indian Renewable Energy Development Agency (IREDA) shares rose nearly 9% to ₹259.3 in Thursday’s BSE trade, as the company’s board is expected to consider a proposal to raise ₹4,500 crore in one or more tranches via a follow-on public offer (FPO) or other means at its meeting on 29 August.

IREDA disclosed its fundraising plans via FPO or other avenues, such as qualified institutional placement (QIP), rights issue, or preferential issue, in a post-market disclosure to the markets on Wednesday. The filing also mentioned that it might be a combination of the above.

At 12:32 p.m., the stock was trading 10.17% higher at ₹263.1 on the BSE. The stock was listed on November 29, 2023, and has risen by a staggering 700% from its issue price of ₹32.

IREDA reported a net profit of ₹384 crore for the quarter ending June 30, 2024, up 30% from ₹295 crore in the previous year. The revenue from operations in the quarter was ₹1.502 crore, compared to ₹1,144 crore in the same quarter of the previous fiscal year. It was an increase of more than 32%.

The state-run NBFC sanctioned a loan worth ₹9,210 crore compared to 1,892 crore, which was up by 387%, the company stated in its submission to the exchanges.

The loans disbursed totalled ₹5,326 crore, up to ₹3,173 crore in the previous year. It was up by 68%.

The loan book as of June 30, 2024 stands at ₹63,207 crore, up 34% from ₹47,207 crore in Q1FY24.

The net non-performing assets (NPAs) was at 0.95%, down from 1.61%, representing a 41.01% decrease in percentage terms, according to the corporate filing.

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