The Indian Renewable Energy Development Agency (IREDA) has announced a significant enhancement in its borrowing limit for FY 2024-25, aiming to strengthen its financial base and support its renewable energy lending operations. The move comes as the company’s shares witnessed a 5% surge on March 18, 2025, following a year-to-date (YTD) slump of 35%.
Key Highlights of the Borrowing Plan
- Increased Borrowing Limit: IREDA’s board has approved an additional borrowing of ₹5,000 crore, raising the total borrowing cap from ₹24,200 crore to ₹29,200 crore.
- Funding Channels: The additional capital will be sourced through taxable bonds, Tier-II bonds, external commercial borrowings (ECB), and credit lines from international agencies.
- Strategic Focus: The funds are intended to bolster IREDA’s lending capacity in the renewable energy sector, aligning with its long-term growth strategy.
Market Performance
Despite the recent 5% jump in share price, IREDA’s stock has faced a challenging year, with a 35% decline YTD. The company’s shares are currently trading below all key moving averages, reflecting a volatile market trend. Over the past month, the stock has dropped by 10%, although it has managed an 8% gain on a one-year basis.
Challenges and Opportunities
IREDA recently faced a setback when the Reserve Bank of India declined its request to invest in Nepal’s 900 MW Upper Karnali Hydro Electric Power Project. However, the company remains focused on strengthening its domestic position through the fresh borrowing plan.
The latest move by IREDA signals its commitment to overcoming market challenges and reinforcing its role in India’s renewable energy sector. Investors and stakeholders will be closely monitoring the company’s performance in the coming months.
