IREDA share price surges 4% after raising ₹1,500 cr via issuance of bonds

IREDA share price surges 4% after raising ₹1,500 cr via issuance of bonds

MINT | June 24, 2024 | 06:44 PM IST | Breaking News | Follow on Google News

IREDA share price surges 4% after raising ₹1,500 cr via issuance of bonds

IREDA share price surges 4% after raising ₹1,500 cr via issuance of bonds

Shares of Indian Renewable Energy Development Agency (IREDA) rose over 4 percent on June 24, following the company’s announcement of raising ₹1,500 crore through a bond issuance.

The state-run company’s bond issuance included a base issue of ₹500 crore and a green shoe option of ₹1,000 crore.

IREDA’s exchange filing revealed that the issue was oversubscribed by 2.65 times. The funds were raised at an annual interest rate of 7.44 percent for a tenure of 10 years and two months.

“We are happy with the overwhelming response to our bond issuance. The oversubscription by 2.65 times underscores the trust and confidence that investors have in IREDA’s vision and its crucial role in driving the renewable energy growth in the country. This successful capital raising will enable us to further strengthen our efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity target by 2030,” said Shri Pradip Kumar Das, Chairman & Managing Director.

The stock of the state-run renewable energy financier received a boost following its inclusion in the FTSE All World Index, with the adjustment taking effect during the June 21 session.

IIFL Alternate Research had predicted inflows of $57 million into IREDA shares. Consequently, the stock experienced a sharp surge in the final 30 minutes of the trading session as the FTSE adjustments were implemented.

IREDA, a Mini Ratna (Category – I) PSU under the Ministry of New and Renewable Energy, provides financial assistance and other services to projects focused on renewable energy sources and energy efficiency/conservation.

Brokerage firm Choice Broking had earlier assigned ‘buy’ rating to the IREDA stock, with a target price of ₹203 per share. “IREDA is presently trading at ₹181, having recently formed a cup & handle pattern with a notable surge in trading volume. This breakout suggests potential further upward movement, with projected price targets set at ₹203. A significant support level is identified near ₹170 on the downside,” the firm said in a note.

MINT