IREDA Shares Hit 20% Upper Circuit, Surges 32% in Two Days Amid Retail Division Launch

11 Dec 2023 , 03:08 PM

Indian Renewable Energy Development Agency (IREDA) shares hit the 20% upper circuit at Rs 85.02 on the BSE, reflecting a 32% rally in the past two trading days. The stock experiences heavy trading volumes, with 210.51 million equity shares changing hands, and only buyers observed on the counter.

Pending buy orders for 18.31 million equity shares exist on the NSE and BSE. IREDA’s stock price has surged 166% against its issue price of Rs 32 per share since its market debut on November 29.

As India’s only renewable energy-focused state-owned NBFC, IREDA positions itself to capitalize on the rapid growth in the RE sector.

The company launches a retail division, aiming to provide loans to borrowers in PM-KUSUM scheme, Rooftop Solar, and other B2C sectors.

IREDA’s Retail division quickly sanctions its first loan of Rs 58 crore under KUSUM-B after opening, showcasing commitment to emerging as a preferred lender in new segments.

Operating as a Systemically Important NBFC, IREDA offers financial products and services across the RE project lifecycle, from conception to post-commissioning.

IREDA has a diverse term loan portfolio financing projects in solar, wind, hydro, transmission, biomass, waste-to-energy, ethanol, compressed biogas, hybrid RE, EEC, and green mobility.

Despite India’s improved renewable capacity reaching 179 GW as of October 2023, the pace of addition has been slow in recent years.

The government targets 500 GW of renewable capacity by FY2030E, with increased auctioning from 15 GW to 20 GW for YTD FY2024.

Key players have ambitious plans for renewable capacities, but execution has been patchy, with plans to achieve 50 GW of annual auctions for FY2024.