IREDA Shares Up 6%, After Sanctioned Loans Jumped Five Times

IREDA share price jumped around 6% on Monday, July 1, 2024. Market participants reacted positively after the company showed massive growth 382.62% in sanctioned loans and 67.61% growth in loan disbursements on a year-on-year basis.

In the first quarter of financial year 2025, IREDA sanctioned loans of Rs 9,136 crore compared to Rs 1,893 crore in corresponding quarter of previous year. Meanwhile, the loan disbursement for the Q1 of FY25 is Rs 5,320 crore. 

IREDA also reported an outstanding loan book of Rs 63,150 crore by the end of this period. IREDA also successfully raised bonds of Rs 1500 crore, which was oversubscribed by 2.65 times. This includes a base issue of Rs 500 crore and green shoe option of Rs 1000 crore. 

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IREDA Among Premier PSU holds Navratna Status

IREDA was granted Navratna status by the Department of Public Enterprises. The Government granted Navratna status to premier PSUs, which helped PSUs execute significant investments up to Rs 1000 crore without requiring central authority approval.

IREDA's IPO was launched in November 2023 with a price band of Rs 30-32 per share and a lot size of 460 shares. However, the stock debuted on the exchanges at Rs 50, marking a premium of 56.25%.

IREDA Financial's in Brief

IREDA revenues increased from Rs 3,843 crore in March 2023 to Rs 4,965 in March 2024. Net profit also rose to Rs 865 crore to Rs 1,252 crore.  The company has a market capitalization of Rs 52,411 crore and stock P/E is 41.8, Book value 31.8.  

The shares of IREDA have nearly doubled in value since its listing, gaining 93%, while in the last three months alone, the stock has gone up by 55%. The share price of IREDA is currently trading at Rs 195 per share with a one day gain of Rs 2.54%.

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