The shares of this large-cap company surged around 6 percent in Tuesday’s trading session after signing initial pacts with SJVN and GMR Energy for the development and implementation of the 900 MW Upper Karnali hydroelectric project in Nepal.
Price Movement:
With a market capitalization of Rs. 62,410 crores, the shares of Indian Renewable Energy Development Agency Ltd (IREDA) started Tuesday’s trading session on a higher note at Rs. 228.77 compared to its previous close of Rs. 223.17.
During the trading session, the shares hit a high of Rs. 239.45, gaining around 6 percent and are currently trading at Rs. 233 apiece.
What Happened:
As per reports, IREDA has a Memorandum of Understanding (MoU) with SJVN Ltd., GMR Energy Ltd., and their associated companies for the development and implementation of the 900 MW Upper Karnali hydroelectric project in Nepal.
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The report further stated that the collaboration aims to enhance regional energy security through the development of renewable energy infrastructure. Additionally, the project is strategically significant for IREDA, as it aims to harness Nepal’s extensive hydropower resources and underscores IREDA’s commitment to advancing renewable energy development.
According to the SJVN’s exchange filing, SJVN and GMR will hold 34 percent shareholding each and IREDA will have 5 percent shareholding in the proposed JV. The balance Equity will be held by NEA (Nepal Electricity Authority).
The project shall be developed on a Build-Own-Operate-Transfer (BOOT) basis with a 25-year concessional period after commissioning. The approximate project cost shall be Rs. 9,100 crores. The project is proposed to be funded through a 70:30 Debt Equity ratio.
Financials:
Looking at the company’s financial statements, the revenue increased by around 9 percent from Rs. 1,391 crores during the March quarter to Rs. 1,510 crores in the June quarter. On the other hand, the net profits jumped by around 14 percent from Rs. 337 crores to Rs. 384 crores during the same period.
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Loan Book:
During the first quarter of FY 2024-25, IREDA sanctioned loans amounting to Rs. 9,210 crores, reflecting a significant growth of 382.62 percent compared to Rs. 1,893 crores in the corresponding quarter of the previous fiscal year.
Disbursements during the same period stood at Rs. 5325 crores, marking an increase of 67.61 percent year-on-year compared to Rs. 3,174 crores in the first quarter of FY 2023-24.
Furthermore, the total loan book outstanding as of 30th June 2024, reached Rs. 63,207 crores, representing a notable growth of 33.77 percent from Rs. 47,207 crores in the previous year.
Company Profile:
The Indian Renewable Energy Development Agency Limited (IREDA) is a government enterprise established in 1987 under the Ministry of New and Renewable Energy (MNRE). It functions as a non-banking financial institution dedicated to promoting and financing projects related to renewable energy and energy efficiency in India.
IREDA provides financial assistance through various lending programs aimed at supporting the development of renewable energy technologies, including solar, wind, and biomass projects.
Written By Vaibhav Patil
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