August 22, 2024
New Delhi, India
IREDA Shares
Indian Renewable Energy Development Agency (IREDA) shares soared nearly 9% on Thursday, August 22, 2024, reaching an intraday high of ₹259.35 per share. This surge comes after the company revealed its plans to raise up to ₹4,500 crore through various fundraising methods, including a follow-on public offer (FPO), qualified institutional placement (QIP), and other means.
Market Reaction: Following the announcement, IREDA’s stock jumped 8.56% in early trade on the BSE, reflecting strong investor confidence in the company’s strategic move. At 10:09 AM, the stock was trading at ₹255, up 6.8% from the previous close. Since its listing on November 29, 2023, IREDA’s stock has seen a remarkable rise of 700% from its issue price of ₹32.
Fundraising Plan: In an exchange filing, IREDA announced that its board meeting on August 29, 2024, would consider a proposal to raise ₹4,500 crore in one or more tranches. The fundraising could be conducted through various methods, including an FPO, QIP, rights issue, preferential issue, or a combination of these. The company emphasized that the fundraising would be subject to statutory or government approvals.
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Financial Performance: IREDA’s strong financial performance has further boosted investor confidence. The company reported a net profit of ₹384 crore for the quarter ended June 30, 2024, marking a 30% increase from ₹295 crore in the same quarter last year. Revenue from operations also saw a substantial rise, growing over 32% to ₹1,502 crore from ₹1,144 crore in the year-ago period.
The state-run NBFC reported significant growth in its loan portfolio, with loans sanctioned amounting to ₹9,210 crore, a 387% increase compared to ₹1,892 crore in the previous year. Disbursed loans also rose by 68%, totaling ₹5,326 crore. As of June 30, 2024, IREDA’s loan book stood at ₹63,207 crore, up 34% from ₹47,207 crore in Q1FY24. The company’s net non-performing assets (NPAs) improved significantly, dropping to 0.95% from 1.61%, a decline of 41.01% in percentage terms.
Technical Indicators: In terms of technical analysis, IREDA’s relative strength index (RSI) stands at 47, indicating that the stock is neither overbought nor oversold. The stock is currently trading above its 10-day, 20-day, 100-day, 150-day, and 200-day simple moving averages (SMAs), suggesting a bullish trend.
IREDA’s announcement to raise ₹4,500 crore through multiple channels has clearly resonated with investors, as evidenced by the sharp rise in its share price. The company’s robust financial performance and improved loan portfolio further underline its growth potential. As IREDA continues to focus on expanding its renewable energy financing, the upcoming board meeting on August 29 will be closely watched for further developments.
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