IREDA shares surge most in over 4 months on fundraising plan

Shares of Indian Renewable Energy Development Agency (IREDA) rose as much as 11.24 per cent to hit an intraday high of Rs 265.75 after the company informed exchanges that it plans to raise Rs 4,500 crore.

The up move in the stock on Thursday was the biggest single day jump in IREDA stock price since April 5, 2024.

Indian Renewable Energy Development Agency Ltd will consider a proposal to raise up to Rs 4,500 crore through issuance of shares in its meeting on August 29, the company said on Wednesday.

The funds would be raised in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Rights Issue / Preferential Issue or any other permitted mode or combination, subject to the statutory or government approval, the company said in a regulatory filing.

IREDA, under the Ministry of New & Renewable Energy, is engaged in providing finance to mainly renewable energy projects.

The fundraising assumes significance as India has an ambitious target of having 500 GW renewable energy by 2030 and needs to add about 50 GW capacity per annum to achieve the goal.

IREDA shares have handsomely rewarded investors as the stock has surged a whopping 343 per cent from its initial public offering (IPO) price of Rs 32. IREDA shares were in high demand during the IPO which ended on November 23 last year as the IPO was subscribed 38.80 times.

The company sold shares in price band of Rs 30-32 per share and raised Rs 2,150 crore which was a combination of fresh issue of Rs 1,290 crore and an offer for sale worth Rs 860 crore.

Retail investors were allowed to bid for minimum one lot of 460 shares up to maximum of 13 lots. One lot of IREDA shares in the IPO was priced at Rs 14,720.