IREDA Q2 Business Update: Disbursements Grow 56%, Loan Book Closes to ₹65,000 Crore

The state-owned Indian Renewable Energy Development Agency (IREDA) Ltd. presented its business update for the July-September period on Monday evening.

In the September quarter, IREDA-approved loans increased 303% year-on-year to ₹17,860 crore from loans worth ₹4,437 crore that IREDA approved in the same period last year.

In terms of disbursements, in the quarter ended September 30, IREDA disbursed 56% more loans compared to the same quarter last year. The company disbursed loans worth ₹ 9,787 crore compared to ₹ 6,273 crore last year.

At the end of the quarter, IREDA’s outstanding loan book stood at ₹ 64,500 crore, an increase of 36% over the year-ago quarter when the PSU loan book stood at ₹ 47,514 crore.

IREDA has been in the news recently ahead of its upcoming fundraising plan. The company aims to raise up to ₹ 4,500 crore, mainly through institutional share sales.

IREDA recently received approval from the Department of Disinvestment and Public Asset Management for a new share issue that could result in dilution of up to 7% of the government’s stake. The government currently owns 75% of the company that finances renewable energy projects.

IREDA shares ended little changed at 233 pounds on Monday. The stock has corrected 25% from the high of 310 pounds it hit in July. At its peak, the share price rose to almost 10 times its IPO price of £32. IREDA shares were listed on stock exchanges at the end of 2023.