IREDA arm gets provisional registration as finance firm in GIFT City; check details

IREDA shares soared up to 3% in morning trade on Wednesday, September 11, after the company announced its subsidiary receiving provisional registration as a finance company in GIFT City.

In a filing to the stock exchanges on Tuesday, the public sector undertaking (PSU) announced that its wholly-owned subsidiary, IREDA Global Green Energy Finance IFSC Limited, has received provisional registration as a finance company at GIFT City.

The International Financial Services Centre Authority (IFSCA) has granted the registration; the company informed the bourses.

IREDA Chairman and Managing Director Pradip Kumar Das highlighted that the renewable energy financier’s presence in GIFT City reflects the PSU’s commitment to advancing green financing solutions globally.

“This new subsidiary will help us secure competitive funding and foster collaborations with international investors, boosting the renewable energy sector forward,” Das said.

The company said the establishment of IREDA Global Green Energy Finance IFSC Limited is a strategic initiative to expand IREDA’s international footprint and unlock new business opportunities.

In early deals, shares of Indian Renewable Energy Development Agency Ltd rose by 2.78% to hit a high of ₹240 per share on the NSE. IREDA shares had gained nearly 5% on Tuesday.

The stock later pared gains due to investors' profit booking and hit a low of ₹231.56 per share on the NSE. However, it recovered some losses to trade 0.86% lower at ₹231.50 apiece at 1:15 pm.

IREDA shares have soared more than 124% in 2024 so far, rising nearly 364% in the last year. However, the stock has dropped over 3% in the last month.

IREDA promotes, develops, and extends financial assistance to new and renewable energy sources and energy efficiency or conservation projects.

Recently, S&P Global Ratings assigned IREDA a 'BBB-' long-term and 'A-3' short-term issuer credit rating, with a 'Stable' outlook.

The agency’s report noted, "IREDA is rated one notch above the starting point for rating financial companies in India, reflecting continued government support."