This recent debutant grows 6x over IPO price in less than 6 months; what’s the latest buzz?

Shares of the state-run NBFC Indian Renewable Energy Development Agency (IREDA) which debuted in November last year have logged significant gains to the tune of 515 per cent over the IPO issue price of Rs 32 apiece. 

In Monday’s afternoon deals, shares of the company traded higher by 3.75 per cent or Rs 6.95 at Rs 192.5, after gaining over 6 per cent to Rs 196.75 at day’s high in early trade. Today’s gains are largely triggered on the company’s better guidance as it aims to reach Maharatna status by 2030.

In a notable achievement, the Department of Public Enterprises (DPE) granted the ‘Navratna status’ to Indian Renewable Energy Development Agency Limited (IREDA) on April 26, 2024.
 
Furthermore, for scaling the status, the company has put forth the targets to be realised over a period of time and by FY 2030. The company plans to take its annual disbursement to Rs 1,36,700 crore and loan book to scale to Rs 3,49,700 crore by the end of FY 2030. This shall translate to a phenomenal CAGR growth of 34.3 per cent and 36.6 per cent in loan book and annual disbursement between FY24-FY30.

Besides, in a filing with the exchanges, the company’s CMD in light of the renewable energy sector financing requirements specified that the company may come up with Perpetual Debt Instruments (PDI)/FPO in the future. Nevertheless, no decision has been made regarding the FPO as yet.

About IREDA 

The company is a systemically important non-deposit taking non-banking financial (NBFC-ND-SI) company. The company is engaged in promoting, developing and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation projects. Further it  provides an array of financial products and related services, from project conceptualization to post-commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission. It has financed projects across multiple RE sectors, such as solar power, wind power, hydro power, transmission, and biomass, among others.