IREDA board approves fundraising of up to Rs 5,000 crore via QIP
Indian Renewable Energy Development Agency (IREDA) on Thursday said that its board of directors, in its meeting on January 23, has approved fundraising of up to Rs 5,000 crore in a fresh equity share issue through a Qualified Institutional Placement (QIP). The company disclosed this development in an exchange filing.
IREDA shares were trading 1.5% lower at Rs 197.20 on the BSE following the announcement. The stock has seen significant fluctuations, declining nearly 27% over the past six months but gaining over 32% in the last 12 months.
Last year, IREDA's board approved a similar fundraising initiative of Rs 4,500 crore via QIP. Additionally, the company had greenlit the establishment of a retail subsidiary, with a business plan submitted to the Reserve Bank of India (RBI). IREDA is still awaiting approval from the banking regulator.
In Q3 FY25, IREDA reported a deterioration in asset quality. Gross Non-Performing Assets (GNPA) rose to 2.68% as of December 31, 2024, compared to 2.19% in September 2024. Similarly, Net NPAs increased to 1.5% from 1.04% over the same period. The absolute GNPA stood at Rs 1,845 crore, up from Rs 1,465 crore in Q3 FY24, while Net NPA climbed to Rs 1,024 crore from Rs 757 crore a year ago.
Despite asset quality challenges, IREDA reported robust financial results in Q3 FY25. Net profit rose by 27% year-on-year (YoY) to Rs 425.38 crore, compared to Rs 335.53 crore in the same period last year. Revenue from operations surged by 35.6% YoY to Rs 1,698.45 crore from Rs 1,252.85 crore.
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