IREDA shares hit 5% upper circuit ahead of board meet to consider fund raising

Indian Renewable Energy Development Agency Ltd (IREDA) shares were locked in an upper circuit limit of 5% on Friday ahead of the company’s Board meeting to consider fundraising proposals.

In a filing to the stock exchanges, the state-owned company informed that its Board will hold a meeting next week on Thursday, March 28, for consideration of the matter related to the borrowing not more than ₹24,200 crore for the upcoming financial year 2024-25.

The borrowing programme would include fund raising through the issuance of bonds, term loans, and commercial paper, among others. The company plans to raise these funds from domestic as well as international markets, it stated in an exchange filing notification.

After the announcement, IREDA shares hit a 5% upper circuit limit of ₹138.65 per piece on the National Stock Exchange (NSE) while the market capitalisation of the company stood at ₹37,265 crore.

IREDA made a strong market debut on November 29, 2023, as the stock listed at ₹50 per piece on NSE, a premium of over 56% compared to its IPO price of ₹32 apiece. The stock has gained more than 177% from its listing price.

The company’s shares recorded a 52-week high of ₹214.8 per piece on the NSE last month on February 6, 2024. The stock has given a healthy double-digit return of 35% to its investors so far this year, and is up 8% in a week’s period.

IREDA’s net profit rose sharply by 67.15% on a year-on-year (YoY) basis to ₹335.54 crore in the quarter ended December 31, 2023, compared to ₹200.75 crore reported in the same period last year.

Its revenue also made a healthy growth of 44.2% to ₹1,252.85 crore in third quarter of the financial year 2024 versus ₹868.67 crore in the corresponding period of the previous fiscal year.