IREDA: Shares of Indian Renewable Energy Development Agency Ltd (IREDA) shares traded in the green during Thursday’s trade after the company’s board approved Rs 24,200 crore fundraise for the financial year 2024-25.
“…the Board of Directors of Indian Renewable Energy Development Agency Limited (IREDA) in its meeting held today i.e., Thursday, March 28, 2024, inter-alia has approved the Borrowing programme up to ₹24,200 Crore for FY 2024-25,” IREDA’s stock exchange filing said.
“The Borrowing includes fund raising through Taxable Bonds/Green Taxable Bonds/Sub-ordinated Tier-II Bonds/Perpetual Debt Instruments (PDI)/ Green Masala Bonds/Green Foreign currency bonds (USD/EUR/JPY)/Foreign currency bonds (USD/EUR/JPY)/Term loan from Banks and FI’s from domestic market/Lines of credit from international agencies/Public & private placement of Tax-free bonds/Capital Gains Bonds/Commercial Papers/Short term loans/CC/WCDL from Banks/Foreign Currency Non-Resident (FCNR -B) Loans from banks/External Commercial Borrowings (ECB) from the domestic and/or international financial market,” the filing added.
IREDA has given a multibagger return of over 325 per cent since its initial public offering (IPO) price of Rs 32.
Stock market expert and ET NOW panellist Gaurang Shah, Senior Vice-President at Geojit Financial Services, has shared a strategy for investment in the share.
IREDA: BUY, SELL, or HOLD?
The PSU stock is trading almost 36 per cent down from its 52-week high of Rs 215 on BSE. Many investors who bought around its 52-week high price are stuck in IREDA’s shares.
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For such investors, Shah suggests, “Average your position only when there is a big fall, say 5 or 10 per cent, in the stock. Also, don’t average in full amount, just use half of your amount for averaging.”
In an exclusive conversation with ET NOW Swadesh, the market expert advises IREDA shareholders to hold the stock, and if it comes around Rs 125, investors can then average their buying price.
IREDA IPO Details
IREDA had launched its IPO in November 2023. Its shares made a strong listing debut, yielding a gain of 87.50 per cent. IREDA shares stock debuted at Rs 60 on both the NSE and the BSE, compared to the issue price of Rs 32.
IREDA Company Profile
IREDA is a public sector undertaking (PSU) under the administrative control of Ministry of New and Renewable Energy. The company provides financial assistance and other services to projects related to renewable sources of energy and energy efficiency/conservation, according to its official website.
IREDA Q3 Results 2024
For the quarter ended in December 2023 (Q3FY24), the state-owned IREDA posted a 67 per cent rise in net profit to Rs 335.54 crore , bolstered by higher income. It had clocked Rs 200.75 crore net profit during the October-December period of the preceding 2022-23 fiscal, the company said in an exchange filing.
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The company’s total income surged to Rs 1,253.19 crore in the third quarter of FY24 from Rs 868.97 crore a year ago.
