IREDA launches Rs 5,000 crore QIP, however who actually owns the inventory?

State-run Indian Renewable Power Growth Company (IREDA) has launched its much-anticipated Certified Institutional Placement (QIP) to boost as much as Rs 5,000 crore, because the renewable vitality financier seems to fund its subsequent section of development. The ground value has been set at Rs 172.4 per share, simply 2.3% beneath Thursday’s shut of Rs 176.50.

Shares of IREDA slipped 1.5% on Friday to Rs 173.90 on the BSE.

Since its itemizing in December 2023 at Rs 32 per share, IREDA’s inventory has delivered a wild trip for buyers. It surged almost 10x to a excessive of Rs 310 earlier than crashing beneath Rs 100, and has since staged a partial comeback, rising 3% previously month, however nonetheless down about 44% from its peak.

Via the highs and lows, one investor group has solely grown stronger: retail shareholders. In December 2023, simply weeks after itemizing, IREDA had 13.5 lakh retail shareholders, these holding as much as Rs 2 lakh in share capital, with a mixed stake of 15.25%.

That determine has now almost doubled. As of June 6, retail shareholders quantity 26.48 lakh and management 20.25% of the corporate.

In the meantime, home mutual funds have saved their distance, holding a negligible 0.23% as of the March quarter. Overseas Portfolio Buyers (FPIs) held 1.75%.The federal government stays the dominant shareholder, proudly owning 75% of IREDA.Service provider bankers managing the problem embrace IDBI Capital Market Companies, BNP Paribas, SBI Capital Markets, Emkay International Monetary Companies, and Motilal Oswal Funding Advisors.

The federal government’s fairness dilution by means of this QIP is not going to exceed 7%, as per the proposal authorised earlier in January.

Development capital in focus

IREDA’s administration has constantly emphasised the necessity for contemporary capital to maintain tempo with the corporate’s increasing mortgage portfolio. “The corporate is rising at a powerful tempo,” officers have stated, including that “we had requested the federal government to take the QIP route to boost funds.”

The QIP is predicted to assist the corporate strengthen its steadiness sheet and scale up lending within the renewable vitality sector.

IREDA This fall earnings

Within the March quarter, IREDA reported a 49% year-on-year rise in consolidated web revenue to Rs 502 crore, in comparison with Rs 337 crore a yr in the past.

Income from operations rose 37% YoY to Rs 1,905 crore, up from Rs 1,391 crore in Q4FY24. On a sequential foundation, revenue after tax grew 18% from Rs 425 crore in Q3FY25.

Working revenue for Q4FY25 stood at Rs 770 crore, up 55% from Rs 498 crore in the identical quarter final yr.

Gross NPAs for the March quarter stood at Rs 1,866 crore, in comparison with Rs 1,845 crore in Q3FY25 and Rs 1,411 crore in Q4FY24.

Additionally learn | IREDA shares slip 2% as agency launches QIP to boost as much as Rs 5,000 crore

Blended technical image

Technically, the inventory is exhibiting a neutral-to-positive setup. It’s buying and selling beneath 4 of its eight key easy shifting averages — together with the 5-day, 10-day, 150-day, and 200-day SMAs. The Relative Power Index (RSI) is at 58.2, whereas the MACD stands at 2.4, remaining above each the centre and sign strains.

(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t symbolize the views of the Financial Instances)