Indian Renewable Energy Development Agency (IREDA) witnessed a significant 5% surge to hit its upper circuit in trading on April 2, buoyed by robust quarterly business updates.
IREDA reported a notable achievement with the highest number of loans sanctioned, totaling Rs 37,354 crore for the financial year ending March 31, 2024. This marked a substantial increase of 14.63% from Rs 32,587 crore sanctioned in the previous year.
As of 10:45 am, the IREDA stock was trading at Rs 149.75 on the NSE, reflecting a 5% increase from the previous session’s closing price.
In the quarter ending March 31, IREDA sanctioned loans amounting to Rs 23,796 crore, registering an impressive year-on-year growth of 101.7% from Rs 11,797 crore sanctioned during the corresponding quarter of the previous year.
During the quarter, loan disbursements by IREDA totaled Rs 12,869 crore, reflecting a growth of approximately 14% compared to Rs 11,291 crore disbursed in Q4FY23.
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In a regulatory filing on March 28, the IREDA board of directors approved a borrowing proposal amounting to Rs 24,200 crore for the fiscal year 2024-25. The proposed borrowing includes raising funds through bonds, perpetual debt instruments (PDI), term loans, commercial papers, and external commercial borrowings (ECB).
However, on March 20, the National Stock Exchange (NSE) revoked IREDA’s inclusion in several key indices due to non-compliance with Sebi portfolio concentration norms. The NSE stated that IREDA breached one of the requirements related to impact cost for Equity Exchange Traded Funds (ETFs) and Index Funds. Consequently, the decision to include IREDA announced on February 28, 2024, was revoked.
Despite this setback, IREDA shares have demonstrated remarkable performance, surging by 150% over the past six months. This performance has significantly outpaced the benchmark Nifty 50 index, which recorded gains of around 15% during the same period.
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