IREDA Shares Gain Over 14 Per Cent In Four Sessions - Know Why

IREDA Share Price: Indian Renewable Energy Development Agency Limited (IREDA) share price has gained for four straight sessions as of March 26. The stock extended gains on March 26 as it gained 0.61 per cent to trade at an intraday high of Rs 171 apiece on the NSE in early trade.

In its four-session rally, shares of the public sector company have gained over 14 per cent between March 20 and March 26. The stock has been on a gaining spree on account of multiple fundraises by the company via the debt route.

Earlier on March 25, Ireda informed the exchanges that it had raised Rs 910.37 crore through the issuance of Privately Placed Subordinated Tier-II Bonds. Ireda has issued the Tier-II Bonds with a 10-year tenor and an annual coupon rate of 7.74 per cent.

The company added that it plans to tap liquidity in the current financial market and support the borrowing plan of the company through the issue of bonds. The Mini-Ratna company added that the funds raised via the issue will increase its Tier-II capital. The fundraise is also likely to improve the company’s net-worth and capital-to-risk-weighted assets ratio (CRAR). An improvement in the NCRAR is likely to enhance the company’s ability to support India’s clean energy transition.

Pradip Kumar Das, Chairman and Managing Director, IREDA said that the fundraising is likely to help the company accelerate green energy financing.

"The successful raising of Tier-II capital reflects investors' strong confidence in IREDA’s financial strength and strategic vision. This will further empower us to accelerate green energy financing, aligning with the Government of India’s target to achieve 500 GW of non-fossil fuel-based energy capacity by 2030,” Das said.

Generally shares gain after successful fundraises as the infusion of capital is likely to boost investor confidence. Fundraises are often aimed at enhancing a company’s ability to capitalise on new opportunities which in turn can lead to potential profits.

Earlier on March 20, IREDA informed the exchanges that it had launched its first-ever issue of Perpetual Bonds. The company plans to raise Rs 1,247 crore via the issue. The perpetual bonds have an annual coupon rate of 8.4 per cent. Ireda added that the bond-issue is aimed at optimising the company’s capital structure and helping it in capitalising on supportive market conditions.

Ireda Share Price History

In a year shares of Ireda have gained over 17 per cent on the NSE. On a year-to-date basis the company’s shares have declined more than 23 per cent. In six months, the state-owned company’s shares have fallen more than 26 per cent. In a month the company’s shares have declined over 5 per cent. In five days the financial company’s stock has surged over 8 per cent on the NSE.

At the time of writing this story shares of Ireda pared the gains to trade at Rs 165.68 apiece on the NSE down by 2.51 per cent on account of likely profit booking, following the stock’s four-session rally.

Buy Outlook Money March 2025 Magazine Issue on Amazon Here.