IREDA shares rise 1.1% as board announces meeting date for fund raise via QIP

Shares of Indian Renewable Energy Development Agency (IREDA) climbed as much as 1.1% on Monday to Rs 209.50 on the BSE following the company’s announcement of the date for its board meeting to approve a fund-raising proposal through a Qualified Institutional Placement (QIP).

The IREDA board is scheduled to meet on Thursday, 23 January 2025, to consider and approve the fund-raising plan via the QIP route.

“This is to inform you that the meeting of the board of directors of IREDA is scheduled to be held on Thursday, 23 January 2025, inter alia to consider and approve raising of funds through the issuance of equity shares by way of a QIP,” IREDA said in an exchange filing.

Last year, IREDA’s board had approved raising a sum of Rs 4,500 crore by selling shares to eligible institutions.

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IREDA Q3 Results

In Q3 FY25, IREDA reported a 27% year-on-year (YoY) increase in its net profit, reaching Rs 425.38 crore compared to Rs 335.53 crore in the same period last year.
Meanwhile, in Q3FY25, total revenue from operations surged by 35.6% year-on-year to Rs 1,698.45 crore, up from Rs 1,252.85 crore in the corresponding quarter of the previous financial year.
On a sequential basis, the profit after tax (PAT) rose by 10% from Rs 387.75 crore reported in Q2FY25. The topline increased by 4.2% quarter-on-quarter from Rs 1,629.56 crore in the July-September quarter.

IREDA’s asset quality in Q3FY25

Company’s Gross NPAs stood at Rs 1,845 crore in December 31, 2024 quarter versus Rs 1,465 crore in the year ago period. As a percentage of total advances, it stood at 2.68% versus 2.90% in Q3FY24.

Net NPA was reported at Rs 1,024 crore in Q3FY25 versus Rs 757 crore in Q3FY24. It was down by 2 bps at 1.50% in Q3FY25 versus 1.52% in Q3FY24.

IREDA shares price target

As per Trendlyne data, the average target price of the stock is Rs 215, which shows an upside of 4% from the current market prices. The consensus recommendation from two analysts for the stock is a ‘Hold’.

IREDA shares performance

On Friday, IREDA share price closed at Rs 207, up 1.4% on the BSE, while the benchmark Sensex declined 0.55%. The stock has declined 24% over the past six months but gained 67% in the last 12 months. The company’s market capitalization stands at Rs 55,677 crore.

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