IREDA to raise funds via QIP; shares rise over 1% ahead of board meeting

Shares of the Indian Renewable Energy Development Agency (IREDA) climbed 1.1 per cent to Rs 209.50 on January 20, 2025, after the company announced its board meeting scheduled for January 23, 2025. The board will discuss and approve a fund-raising proposal through Qualified Institutional Placement (QIP).

In a regulatory filing, IREDA stated, “The meeting of the board of directors is scheduled on Thursday, January 23, 2025, to consider and approve raising funds through the issuance of equity shares via the QIP route.”

Fund-raising plans
IREDA had previously received board approval to raise Rs 4,500 crore through share sales to eligible institutions. The move aligns with the company’s strategic goal of expanding renewable energy financing in India.

Q3 FY25 performance overview
IREDA’s financial results for Q3 FY25 highlighted robust growth:

• Net profit: The company posted a 27 per cent year-on-year increase in net profit, reaching Rs 425.38 crore, up from Rs 335.53 crore in Q3 FY24.

• Revenue growth: Revenue from operations surged 35.6 per cent YoY to Rs 1,698.45 crore compared to Rs 1,252.85 crore in the same quarter of the previous fiscal.

• Sequential growth: Profit after tax (PAT) rose 10 per cent sequentially from Rs 387.75 crore in Q2 FY25.

Improving asset quality
Gross NPAs for the quarter stood at Rs 1,845 crore, reflecting an improvement as a percentage of advances at 2.68 per cent versus 2.90 per cent in Q3 FY24. Net NPAs were recorded at Rs 1,024 crore, showing a decline to 1.50 per cent compared to 1.52 per cent in the same period last year.

Market outlook
Despite recent gains, IREDA shares have declined 24 per cent over the past six months but have gained 67 per cent over the last year. The stock closed at Rs 207 on January 19, with analysts recommending a 'Hold' and a target price of Rs 215, indicating a potential upside of 4 per cent.

With solid financial performance and upcoming fund-raising plans, IREDA remains a key player in India’s renewable energy sector.