IREDA coming up with FPO? Here's how NBFC reacted to media reports

The explanation comes after media reports claimed that the green energy sector focused non-banking financial company (NBFC) is planning an FPO.

IREDA said that the reports were based on Chairman and Managing Director Pradip Kumar Das recent discussion with journalists, where he "offered his views" that the company may come up with perpetual debt instruments (PDI) or FPO in the future to meet business requirements of the company.

IREDA calls media reports incorrect

"However, we would like to clarify that the company has not made any decision regarding FPO...The company states that the information reported in the media is incorrect," the company said in an exchange filing.

According to IREDA, the matter regarding the FPO will be brought up with the board and the government at an appropriate time. As of March 31, 2024, the Government of India holds a 75% stake in IREDA.

Shares of IREDA listed on Indian bourses in November 2023. It was recently awarded Navratna status.

The stock is trading 2.1% higher at ₹187.5 on the NSE. Intraday, it reported a high of ₹193.1.

In Q4 FY24, the company reported a consolidated net profit of ₹337 crore, compared to ₹254 crore in the same period last year, reflecting a 33% gain.

The credit quality of IREDA improved as gross non-performing assets (GNPA) declined to 2.36% in FY24 from 3.21% in the year-ago period. NNP and net non-performing assets also reduced to 0.99% from 1.66% year-on-year (YoY).

The state-run company had sanctioned loans worth ₹37,354 crore and disbursed loans amounting to 25,089 crore in fiscal year 2023-24.