During Friday’s trading session, shares of a ‘Navratna’ Government of India Enterprise and India’s largest pure-play green financing NBFC are in focus, after the company launched a Qualified Institutions Placement (QIP) to raise up to Rs. 5,000 crores.
With a market cap of Rs. 47,009 crores, at 01:31 p.m., the shares of Indian Renewable Energy Development Agency Limited (IREDA) were trading in the red at Rs. 174.9 on BSE, down by 1 percent, as against its previous closing price of Rs. 176.5. The stock has delivered negative returns of around 2 percent in one year, but has gained by over 9 percent in the last one month.
What’s the News
According to the latest regulatory filings, the Board of IREDA at its meeting has approved authorising the opening of the proposed issue on 5th June 2025, to eligible qualified institutional buyers. The company launched a qualified institutional placement (QIP) to raise up to Rs. 5,000 crores.
The Board has set the floor price for the issue at Rs. 173.83 per equity share, with an option to offer a discount of up to 5 percent on the floor price. Additionally, the Board has approved the preliminary placement document and draft of the application form for the QIP.
As per the plan previously approved in January, the government’s stake in the company will be diluted by no more than 7 percent through this issue. The company’s Board had initially approved the fundraising plan on 23rd January, while the shareholders gave their approval for the QIP proposal during the 22nd Extraordinary General Meeting held on 24th February 2025.
Financials & more
IREDA reported a significant growth in its revenue from operations, showing a year-on-year rise of around 37 percent from Rs. 1,391 crores in Q4 FY24 to Rs. 1,905 crores in Q4 FY25. Similarly, its net profit increased during the same period from Rs. 337 crores to Rs. 502 crores, representing a growth of around 49 percent YoY. As of FY25, the company’s outstanding loan book grew by 28 percent YoY to Rs. 76,282 crores, up from Rs. 59,698 crores in FY24.
IREDA is a Government of India enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE), and is an RBI-registered non-deposit taking NBFC. It is engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation. The company also owns a 50 MW Solar project at Kasargod, Kerala.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
