IREDA planning FPO to meet future capital requirements, claims report

Indian Renewable Energy Development Agency Ltd (IREDA) is planning a follow on public offer (FPO) to meet future capital requirements, news agency PTI reported on Tuesday. "The company is planning an FPO as well as perpetual debt for meeting future capital requirements of the company and onward lending mainly for renewable energy projects," the report stated quoting IREDA chairman and managing director Pradip Kumar Das.

The report, however, didn't specify any timeline for the FPO.

IREDA's stock today settled 4.14 per cent higher at Rs 183.55. The renewable energy state-run financier made a stellar stock market debut on November 29 last year. The company's initial public offering (IPO) price was Rs 32.

The state-owned firm has recently incorporated a subsidiary at the International Financial Services Centre (IFSC) located in GIFT City, Gujarat. Prior to this, it was granted 'Navratna' status from the department of public enterprises.

Analysts at Choice Equity Broking have given a 'Buy' call on the counter with a target price of Rs 203. "IREDA presents a promising buying opportunity for those targeting a Rs 203 price objective, contingent upon implementing prudent risk management measures," they stated.

"To effectively manage risk, it is advisable to establish a stop loss at Rs 170 to protect the investment against unexpected market reversals. A prudent approach involves considering buying opportunities during market dips at levels around Rs 177," the domestic brokerage further said.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 170 and resistance at Rs 190. A decisive close above Rs 190 level may trigger a further upside till 200. The expected trading range will be between Rs 165 and Rs 210 for a month."

IREDA is a firm under the administrative controls of the Ministry of New and Renewable Energy. The organisation offers a comprehensive array of financial products (fund- and non-fund-based) associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.

(With inputs from PTI)