Shares of Indian Renewable Energy Development Agency (IREDA) surged over 4 percent on June 24 following the announcement of a ₹1,500 crore bond issuance. This state-run company’s bond issue comprised a base amount of ₹500 crore and an additional ₹1,000 crore via a green shoe option.
IREDA’s exchange filing revealed that the bond 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 pleased with the overwhelming response to our bond issuance. The 2.65 times oversubscription underscores investors’ trust and confidence in IREDA’s vision and its pivotal role in driving renewable energy growth in India. This successful capital raising will bolster our efforts in financing green energy projects, contributing to India’s target of achieving 500 GW non-fossil fuel installed capacity by 2030,” said Shri Pradip Kumar Das, Chairman & Managing Director.
The stock also received a boost after being included in the FTSE All World Index, with adjustments taking effect during the June 21 session. IIFL Alternate Research had predicted inflows of $57 million into IREDA shares, causing a sharp surge in the stock during the final 30 minutes of trading 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.
