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Ireda hits 5% upper circuit on record loan sanctions, disbursements in FY24

Ireda said it recorded the highest-ever loan sanctions worth Rs 37,354 crore in FY24, while loan disbursements stood at Rs 25,089 crore

IREDA

IREDA

SI Reporter New Delhi

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Shares of Indian Renewable Energy Development Agency (Ireda) froze at 5 per cent upper circuit on the BSE on Tuesday after the clean energy financier posted record loan growth for the recently concluded financial year of 2023-24 (FY24).

In an exchange filing, released post market hours on Monday, Ireda said it recorded the highest-ever loan sanctions worth Rs 37,354 crore in FY24, while loan disbursements stood at Rs 25,089 crore. With this, total loan book stands at Rs 59,650 crore, a record growth of 26.71 per cent.

Further, its sanctioned loans jumped nearly 102 per cent year-on-year (Y-o-Y) to Rs 23,796 crore during the March quarter of FY24 (Q4FY24), while disbursed loans grew 14 per cent to Rs 12,869 crore. 

At 9:45 AM, the stock was locked at the upper limit at Rs 150 per share as against an unchanged benchmark S&P BSE Sensex. A combined 8.23 million shares had changed hands on the BSE and NSE till the time of writing of this report. 

Ireda debuted on the stock exchanges on November 29, 2023 at a 56 per cent premium over its issue price of Rs 32 per share. The shares hit a record high of Rs 215 per share on February 6, 2024. 

It is engaged in financing renewable energy (RE) and energy efficiency projects. The initial public offering (IPO) of the state-owned company had garnered nearly 39 times subscription led by massive subscription from qualified institutional buyers at 104.57 times. 

The non institutional investors (NII) category was subscribed 24.16 times, while the retail category was booked at 7.73 times, and the portion reserved for employees saw a strong 9.8 times subscription.

Meanwhile, on March 28, the Board approved a borrowing programme for up to Rs 24,200 crore for FY25. The borrowing includes fund raising through Taxable Bonds/Green Taxable Bonds/Sub-ordinated Tier-II Bonds/Perpetual Debt Instruments (PDI)/ Green Masala Bonds/Green Foreign currency bonds (USD/EUR/JPY)/Foreign currency bonds (USD/EUR/JPY)/Term loan from Banks and FI's from domestic market/Lines of credit. 

Last montj, the NSE said that as Ireda has 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 in several key indices including 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.

Ireda's inclusion was to come into effect from March 28, 2024.

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First Published: Apr 02 2024 | 10:03 AM IST

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