IREDA Shares Gain 1.1% as Board Sets Meeting Date for QIP Fundraising

resr 5paisa Research Team

Last Updated: 20th January 2025 - 04:42 pm

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Shares of the Indian Renewable Energy Development Agency (IREDA) Ltd. are expected to be in the spotlight on Monday, January 20, following the company's announcement regarding the date of its upcoming board meeting, where it will finalize plans for fund-raising through a Qualified Institutional Placement (QIP).

On Monday, IREDA's stock closed 1.3% higher at ₹206.8, though it remains more than 30% below its recent peak of ₹310.

The board is scheduled to convene on Thursday, January 23, to approve the QIP-based fund-raising initiative. Previously, IREDA's board had sanctioned a capital raise of ₹4,500 crore through share sales to eligible institutional investors.

During a recent interaction with CNBC-TV18 following the company's financial results, IREDA's CMD, Pradip Kumar Das, indicated that the company aims to complete the fund-raising process by the end of the current quarter.

"Since we are launching a QIP soon, we must exercise caution on all fronts to maintain investor confidence," Das stated.

Additionally, last year, IREDA had approved the establishment of a retail subsidiary. Das mentioned that the company has already submitted its business plan to the Reserve Bank of India and is currently awaiting regulatory approval.

In the December quarter, IREDA experienced a decline in asset quality, with Gross Non-Performing Assets (NPA) rising to 2.68% from 2.19% in September, while Net NPAs increased to 1.5% from 1.04% in the same period.

Das explained that out of the ₹433 crore increase in gross NPA, a significant portion stemmed from a single account that turned into an NPA. The affected account was in the waste and bioenergy sector. However, Das remains optimistic that this figure will decline in the coming quarters.

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