IREDA shares slip 2% as firm launches QIP to raise up to Rs 5,000 crore

Shares of state-owned Indian Renewable Energy Development Agency (IREDA) slipped by 2.3% to their intraday low of Rs 172.4 on the BSE on Friday after the company launched a qualified institutional placement (QIP) to raise up to Rs 5,000 crore on Thursday night.

IREDA’s board has fixed the floor price for the QIP at Rs 173.83 per equity share, as per a stock exchange filing on Thursday. The company may offer a discount of up to 5% on the floor price.

The board also approved the preliminary placement document and draft application form related to the QIP.

Merchant bankers managing the issue include IDBI Capital Market Services, BNP Paribas, SBI Capital Markets, Emkay Global Financial Services, and Motilal Oswal Investment Advisors.

The government’s equity dilution through this QIP will not exceed 7%, as per the proposal approved earlier in January.

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IREDA Q4 earnings

In the March quarter, IREDA reported a 49% year-on-year rise in consolidated net profit to Rs 502 crore, compared to Rs 337 crore a year ago.

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

Operating profit for Q4FY25 stood at Rs 770 crore, up 55% from Rs 498 crore in the same quarter last year.

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

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IREDA share price target and performance

According to Trendlyne, the average target price for IREDA is Rs 173, suggesting a potential downside of around 2% from current levels. Of the two analysts covering the stock, the consensus rating is ‘Buy’.

IREDA shares closed 1.5% higher at Rs 176.5 on the BSE in the previous session, outperforming the Sensex’s 0.55% gain. While the stock has risen 2% over the past year, it is down 20% year-to-date.

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