Share price of one of India’s largest pure-play green financing NBFC moved up by 0.73 percent on BSE to hit an intraday high at Rs. 186.25 in the trading session of Wednesday, compared to its previous closing price of Rs. 184.9.
With a market capitalisation of Rs. 49,790.84 crore, Indian Renewable Energy Development Agency (IREDA) Limited has delivered nearly 208.8 percent of multibagger returns in the last six months and around 77 percent of positive returns, so far in 2024.
The three primary categories of central public sector enterprises (CPSEs) in India are Miniratna, Navratna, and Maharatna CPSEs.
The company must meet minimum shareholding requirements, have “Navratna” status, and have an average annual turnover of more than Rs. 25,000 crore during the previous three years in order to be designated as a Maharatna.
On 26th April 2024, the Department of Public Enterprises (DPE) has already granted the ‘Navratna status’ to IREDA.
There are 57 Miniratna, 17 Navratna and 13 Maharatna companies, where IREDA became the 17th Navratna company after being granted that status.
Now, IREDA aims to become a ‘Maharatna’ PSU by the year 2030, for which the Board of the company has approved a broad roadmap subject to government guidelines and applicable approvals, as per the regulatory filings with the stock exchanges.
In order to achieve Maharatna Status, the company has proposed two targets to be achieved by the financial year 2030.
The first target includes increasing the company’s annual disbursement by around 258 percent to Rs. 1.36 lakh crore by FY29-30 from Rs. 38,200 crore in FY24-25.
At the end of FY23-24, IREDA achieved all-time high annual disbursements of Rs. 25,089.04 crore, registering an increase of 15.94 percent, over the previous financial year disbursements of Rs. 21,639.21 crore, marking the highest annual loan disbursement in the company’s history.
The second target of the company is to increase its loan book to Rs. 3.5 lakh crore, indicating a rise of about 318 percent from Rs. 83,700 crore in FY24-25.
The loan book of IREDA increased from Rs. 47,052.52 crores as of 31st March 2023 to Rs. 59,698.11 crores as of 31st March 2024, registering a growth of 26.81 percent.
IREDA will have more power and autonomy than other PSU categories if it receives Maharatna status since 15 percent of a Mahatna PSU’s net worth can be invested in a project without prior government approval.
In terms of financials, the company’s revenue from operations grew by nearly 34.3 percent YoY from Rs. 1,036.04 crore in Q4 FY22-23 to Rs. 1,391.25 crore in Q4 FY23-24, accompanied by an increase in net profit of 33 percent YoY, from Rs. 253.62 crore in Q4 FY22-23 to Rs. 337.4 crore in Q4 FY23-24.
Indian Renewable Energy Development Agency (IREDA) Limited is a government enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
IREDA was established in 1987 as a Non-Banking Financial Institution engaged in the business of promoting, developing and extending financial assistance for setting up projects related to new and renewable sources of energy and energy efficiency or conservation.
Written by Shivani Singh
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