Shares of the Indian Renewable Energy Development Agency (IREDA) surged over 6 percent in morning trading on July 1. This rise comes after the company reported a massive 382.62 percent year-on-year increase in loan sanctions for the June 2024 quarter. The total loan sanctions reached Rs 9,136 crore compared to Rs 1,893 crore a year earlier.
The company’s loan disbursements also saw significant growth, rising 67.61 percent year-on-year to Rs 5,320 crore from Rs 3,174 crore in the June 2023 quarter. IREDA’s outstanding loan book grew to Rs 63,150 crore in Q1FY25, up 33.77 percent from Rs 47,207 crore a year ago.
At 10:00 am, IREDA’s stock was trading over 3 percent higher at Rs 197.50 on the National Stock Exchange (NSE). So far this year, the stock has soared 88 percent, significantly outperforming Nifty’s 10 percent return.
The company’s management indicated to CNBC-TV18 that IREDA is likely to raise equity capital through a Follow-on Public Offer (FPO), pending government approval. The FPO is expected to take place between November this year and February next year as the company needs an equity infusion.
IREDA’s IPO was launched in November last year, with shares issued at Rs 32 apiece in the primary market. The stock had a strong debut, listing at a premium of 56.25 percent over the IPO issue price.
