IREDA shares surge over 10% on Rs 4,500-crore fundraising plan

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) on Thursday surged over 10 per cent on the bourses after the company said its board will consider a proposal to raise up to Rs 4,500 crore through issuance of shares.

The stock of IREDA jumped 10.19 per cent to trade at Rs 263.30 apiece on the NSE.

On the BSE, it rallied 10.07 per cent to Rs 262.95. In the intraday trade, shares of IREDA advanced more than 11 per cent to hit a high of Rs 265.75 and 265.70 apiece on the BSE and NSE, respectively.

The 30-share BSE Sensex rallied 242.61 points or 0.30 per cent to 81,147.91 points, while NSE Nifty jumped 74.95 points to 24,845.15.

The Indian Renewable Energy Development Agency Ltd (IREDA) on Wednesday said its board will consider a proposal to raise up to Rs 4,500 crore through issuance of shares in its meeting on August 29.

The funds would be raised in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Rights Issue / Preferential Issue or any other permitted mode or combination, subject to the statutory or government approval, the company said in a regulatory filing.

IREDA, under the Ministry of New & Renewable Energy, is engaged in providing finance to mainly renewable energy projects.

The fundraising assumes significance as India has an ambitious target of having 500 GW renewable energy by 2030 and needs to add about 50 GW capacity per annum to achieve the goal.