IREDA has successfully raised a fund raising amount of ₹5,000 crore through a Qualified Institutional Placement
IREDA : The Board of Indian Renewable Energy Development Agency (IREDA) Ltd. has approved raising a total of ₹5,000 crore through a Qualified Institutional Placement (QIP) route. This decision was made during a meeting held on Thursday, January 23, 2025.
IREDA plans to issue equity shares through a qualified institutions placement in one or more tranches, in accordance with applicable laws, to raise up to ₹5,000 Crore. This information was disclosed in an exchange filing by the company.
In 2024, IREDA’s board had previously approved raising ₹4,500 crore by selling shares to eligible institutions. Following the release of its December quarter results on January 9, CMD Pradip Kumar Das stated that the company aims to complete the fund raise by the end of the current quarter.
Das emphasized the importance of maintaining investor confidence during the upcoming QIP process, highlighting the need for caution on all fronts. Additionally, IREDA had approved the establishment of a retail subsidiary last year, with a business plan submitted to the Reserve Bank of India for approval.
During the October-December period, IREDA experienced a decline in asset quality, with Gross NPA increasing to 2.68% from 2.19% in September, and Net NPAs rising to 1.5% from 1.04% in September. The Provision Coverage Ratio at the end of the December quarter was 44.5%, down from 52.9% in the previous quarter.
Das explained that the increase in gross NPA was primarily due to one account related to waste and bioenergy that slipped into NPA status. However, he anticipates a decrease in this number in the upcoming quarters.
IREDA shares are currently trading at ₹197.30 on Thursday, marking a 1.48% decrease. The stock has already experienced a significant correction of 37% from its peak of ₹310, which was reached in July of last year.
Published on January 23, 2025 at 10:14 AM, this information provides insight into the current performance of IREDA shares in the market.
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