Ireda Share Price Drops After RBI Rejects Nepal Investment Plan
Ireda share price fell 1.6% intraday to Rs 147.2 apiece.
Indian Renewable Energy Development Agency Ltd. share price traded lower on Monday after the Reserve Bank of India declined the request for investment in a mega hydro project in Nepal.
The company said it will resubmit its application for the 900 megawatt Upper Karnali hydro electric power project.
Ireda had received in-principle approval from its board in July last year to invest up to 10% equity estimated at around Rs 290 crore in GMR Upper Karnali Hydro Power Ltd., Nepal and Karnali Transmission Co., Nepal, in partnership with SJVN Ltd.
The existing shareholders of GMR Upper Karnali Hydro Power include the GMR Group and the Nepal Electricity Authority.
On Jan. 17, 2025, Ireda further announced that it had signed a non-binding joint venture agreement with GMR companies, SJVN, Nepal Electricity Authority, and GMR Upper Karnali Hydropower.
It also said that India’s Department of Investment and Public Asset Management had approved a 5% equity investment by Ireda in both Nepal-based entities, following a recommendation from the Ministry of New and Renewable Energy on Jan. 15, 2025.
Ireda Share Price Down
Ireda share price fell 1.6% intraday to Rs 147.2 apiece. The scrip was trading 1.12% lower by 10:10 a.m. The benchmark NSE Nifty 50 was up 0.34%.
The stock has been flat in the last 12 months and fallen 31% on a year-to-date basis. The relative strength index was at 42.
Of the two analysts tracking Ireda, one each have a 'buy' and a 'sell' rating on the stock, according to Bloomberg data. The average of 12-month analyst price target of Rs 200 implies a potential upside of 35%.
