Rama Krishna Sangem
IREDA is now a Navarana PSU. Shares of Indian Renewable Energy Development Agency Limited (IREDA) surged 13 per cent to Rs 192 on the BSE in Monday’s trading session amid heavy volumes after the company said government accords ‘Navratna’ status to the company.
In exchange filing, the state-owned financial institution company on Friday after market hours said the Department of Public Enterprises (DPE) vide its letter dated April 26, 2024 has granted the ‘Navratna status’ to IREDA.
A Navratna status imparts enhanced financial and operational freedom to a company and empowers it to invest up to Rs 1,000 crore or 15 per cent of its net worth on a single project without seeking government approval.
IREDA was established for the promotion, development and commercialisation of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects.
The sectors financed by IREDA can broadly be classified as under wind energy, small hydro energy, bioenergy, solar energy, energy efficiency and conservation, and new and emerging technologies. The Reserve Bank of India (RBI) classified the company as “Infrastructure Finance Company”. The shares of the company got listed on NSE and BSE on November 29, 2023.
Registers 33 pc growth
In the past six trading days, post March quarter (Q4FY24) results, shares of IREDA have rallied 19 per cent. The company had reported 33.3 per cent growth in profit after tax (PAT) at Rs 337.38 crore in Q4FY24, as against Rs 253.62 crore in Q4FY23.
The company has also reduced its net non-performing assets (NPAs) to 0.99 per cent from 1.66 per cent in the year ago quarter. The loan book of IREDA has grown 26.8 per cent from Rs 47,052.52 crore as on Q4FY23 to Rs 59,698.11 crore as on Q4FY24.
IREDA had achieved an all-time high annual loan sanctions of Rs 37,353.68 crore and disbursements of Rs 25,089.04 crore in financial year 2023-24 (FY24), registering an increase of 14.63 per cent and 15.94 per cent respectively, over previous financial year. This marks the highest annual loan disbursement and sanction in the company’s history.Various steps by the Centre to boost solar and other renewable sources of energy are reasons for this surge.
