Ireda Approves Fund Raise Of Rs 5,000 Crore Via QIP, Shares Hit Nearly Two-Month Low

Indian Renewable Energy Development Agency Ltd. on Thursday approved a fund raise of up to Rs 5,000 crore through qualified institutional placement. The shares of the company fell to nearly two-month-low.

The fund raise will be through one or more tranches, the company said through an exchange filing on Thursday. However, the amount or equity shares of the President of India, acting through the Ministry of New and Renewable Energy, Government of India cannot dilute over 7%.

Ireda posted a net profit of Rs 425 crore in the quarter ended Dec. 31, 2024, an increase of 26.7% year-on-year. In the same quarter of the previous fiscal, Ireda had posted a net profit of Rs 336 crore.

The non-banking financial institution's revenue rose 35.6% to Rs 1,699 crore during the October–December period, compared to Rs 295 crore in the year-ago period.

For the December quarter, Ireda registered a 41% year-on-year growth in loan disbursements to Rs 17,236 crore from Rs 12,220 crore in the same period last year. The company also posted a 129% increase in loan sanctions to Rs 31,087 crore, compared to Rs 13,558 crore in the corresponding period of 2023.

As a result of this surge in activity, Ireda's outstanding loan book reached Rs 69,000 crore as of Dec. 31, 2024, a 36% rise from Rs 50,580 crore a year ago.

Ireda reported a net NPA of Rs 1,024 crore in the December quarter, as compared to Rs 757 crore in the same quarter last fiscal. The rise in net non-performing assets for the company in the December 2024 quarter was primarily due to a single Rs 433-crore default in its waste-to-energy category, the company’s Chairman and Managing Director, Pradip Kumar Das, told NDTV Profit.

“Only with one group, one account of Rs 433 crore new net NPA has been added. They could not pay (the dues for) 90 days,” Das said, while highlighting that the company has significantly reduced defaults over the last 18 quarters.

He mentioned that the NPA addition has come from the waste-to-energy category, which comprises 1% of the company’s Rs 69,000 crore loan book.

Shares of Ireda fell as much as 2.61% to Rs 195.03 apiece, the lowest level since Nov. 27. It pared losses to trade 0.94% lower at Rs 198.37 apiece, as of 2:22 p.m. This compares to a 0.33% advance in the NSE Nifty 50.

The stock has risen 28.77% in the last 12 months. The relative strength index was at 42.

Out of two analysts tracking the company, one maintains a 'buy' rating and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1.1%.