Shares of Indian Renewable Energy Development Agency (IREDA) shares surged 20 per cent to hit the upper circuit at Rs 85 on the National Stock Exchange (NSE) after the company announced the launch of its retail division.
The state-owned financial institution’s stock has witnessed a remarkable rally of 32 per cent in the past five trading days. It may be noted that IREDA’s current stock price has soared by 166 per cent from its issue price of Rs 32 per share since its market debut on November 29.
The Central Public Sector Enterprise (CPSE) launched the retail division on Friday, in a major step towards expanding its lending services. The stock’s stellar uptick on December 11, 2023, was in response to the said announcement.
IREDA’s retail division was officially launched on December 5, targeting the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme, the rooftop solar projects, and other projects related to the business-to-consumer (B2C) segments with respect to loans.
With its entry into the retail business, the miniratna PSU aims to deepen bond markets while fostering increased global and local investments to promote renewable energy initiatives further.
According to the company’s Chairman and Managing Director (CMD), Pradip Kumar Das, a proposal of 1-2% of Assets Under Management (AUM) allocation has been made towards domestic pension and insurance funds into renewable energy bonds. Das also participated in the COP-28 event held in Dubai.
At the discussion organised on ‘Scaling Up Climate Finance to Meet India’s Energy Transition Goals’, organised by the Asian Development Bank, Das highlighted the importance of establishing a comprehensive green taxonomy to cover the entire spectrum of Renewable Energy and green technology-based investments.
IREDA was listed on the stock exchanges on November 29, 2023, at a healthy premium of 56%. It made a strong debut on BSE at Rs 50 per share, gaining a stellar 70% in less than a period of two weeks.
IREDA is India’s only renewable energy (RE)-focused state-owned non-banking financial company (NBFC). IREDA’s positioning as the largest pure-play green financing NBFC in India places it among the very few players who are well placed to capitalise on the rapid growth in the RE sector. There has been a fair amount of thrust on RE after 2014 by the new government at the Centre. In an exchange filing on Friday after market hours, IREDA said the company has launched retail division. This strategic initiative is geared towards enhancing emphasis on providing loans to borrowers in the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.
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