IREDA to raise ₹24,200 cr from debt market in FY25; stock up 3%

State-owned Indian Renewable Energy Development Agency (IREDA) has proposed to borrow ₹24,200 crore through the debt market in the next financial year starting on April 1. The board of directors of IREDA, which comes under the Ministry of New and Renewable Energy (MNRE), is scheduled to meet on March 28 to consider and approve the borrowing programme for the financial year 2024-25. The fund will be raised by the issuance of bonds, term loans, commercial paper etc. from domestic and international markets.

“This is to inform that a board meeting of Indian Renewable Energy Development Agency Limited will be held on Thursday, March 28, 2024, to consider the matter w.r.t. borrowing programme up to ₹24,200 crore for FY 2024-25 (borrowing includes fund raising through issuance of bonds, term loans, Commercial Paper etc. from domestic & international markets),” it said in an exchange filing post market hours on Thursday.

Reacting to the news, IREDA shares opened higher for the second straight session at ₹133.25, up 0.9% against the previous closing price of ₹132.05 on the BSE. On Thursday, the stock ended 5% higher, snapping two session losses.

In the early trade, the PSU stock rose as much as 3.3% to ₹136.40, while the market capitalisation rose to ₹36,475 crore.  

IREDA, which made its market debut on November 29, 2023, has seen its stock price rising more than 300% against the initial public offering (IPO) price of ₹32 apiece. The counter touched its record high of ₹215 on February 6, 2024, while it hit a low of ₹49.99 on its debut. In the calendar year 2024, the PSU share has gained 29%, despite falling nearly 20% in the last month.

Earlier this week, NSE revoked the inclusion of IREDA in key indices due to its non-compliance with SEBI portfolio concentration norms. “As IREDA breached one of the requirements of SEBI Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds related to impact cost, the committee has decided to revoke its earlier decision to include IREDA announced on February 28, 2024,” the NSE said in a release on March 20.

On February 28, 2024, as part of a periodic review of various indices, the Index Maintenance Sub-Committee (Equity) of NSE Indices announced the inclusion of IREDA in Nifty 500, Nifty Midcap 150, Nifty Midcap 100, Nifty 200, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty Total Market and Nifty500 Multicap 50:25:25 indices, with effect from March 28, 2024.

In the Nifty 500, IREDA will be replaced by V-Guard Industries as the NSE Indices has decided to revoke its exclusion. Similarly, it will be replaced by BSE Ltd in Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 100, Nifty 200, and Nifty LargeMidcap 250.

The above change in the Nifty 500 index will also apply to the Nifty500 Multicap 50:25:25 index, as per the NSE release.

Established in 1987, IREDA is an RBI-registered non-banking financial institution engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy. 

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