Shares of Indian Renewable Energy Development Agency Ltd (IREDA) will be in focus during the trading session on Thursday as the company is mulling to raise funds. The company board of PSU players is likely to meet soon to consider and approve the fundraising proposal.
"This is to inform that Board meeting of Indian Renewable Energy Development Agency is scheduled to be held on Thursday, August 29, 2024, inter-alia, to consider and approve the proposal for raising of funds by way of equity share capital for an amount aggregating of upto Rs 4,500 crore in one or more tranches," said the company in an exchange filing.
The fundraising may be carried through further public offer (FPO), qualified institutional placement (QIP), rights issue, preferential issue or any other permitted mode or a combination, as may be deemed appropriate, subject to the statutory or government approval, it added.
Shares of IREDA had settled at Rs 238.90 on Wednesday, falling about 0.65 per cent for the session. The total market capitalization of the company stood slightly above Rs 64,000 crore. The stock has surged 650 per cent from its IPO price of Rs 32 and 380 per cent from its listing price of Rs 49.99. However, it has crashed nearly 23 per cent from its 52-week high at Rs 310.
IREDA reported a 30 per cent YoY growth in its net profit to Rs 383.69 crore for the April-June 2024 quarter. The revenue from operations stood at Rs 1.502 crore in the quarter, up 32 per cent YoY. Its asset quality also improved on a sequential (QoQ) basis as Gross NPA stood at 2.19 per cent, while Net NPAs came down to 0.95 per cent.
"Given the government's focus on the renewable sector, we remain positive on long term growth prospects which will aid long term sustained growth in AUM," said ICICIDirect. "Thus, we value the stock at 49 times FY26E EPS, assigning a target of Rs 330," it added with a 'buy rating on the stock.
On the other hand, Phillip Capital has maintained its 'sell' rating with revised target of Rs 130, valuing the company at 3 times FY26 ABVPS of Rs 42. "The recent rally in the stock is driven by passive flows rather than any major fundamental reason. We believe the best is already priced into the stock," it said post Q1 results.