IREDA board approves borrowing plan of up to Rs 30,800 crore for FY26

The board of Indian Renewable Energy Development Agency (IREDA) Ltd on Tuesday cleared a borrowing programme of up to Rs 30,800 crore for the financial year 2025-26 (FY26). "The Borrowing includes fund raising through Taxable Bonds/Green Taxable Bonds/Sub-ordinated Tier-II Bonds/Perpetual Debt Instruments (PDI)/ / Public & private placement of Tax-free bonds / Capital Gains Tax Bonds/ Term loan from Banks and FI’s/ Green Masala Bonds/ Green Foreign currency bonds (USD/EUR/JPY)/ Foreign currency bonds (USD/EUR/JPY)/Lines of credit from international agencies including multilateral and bilateral agencies/ Foreign Currency Non-Resident (FCNR -B)/ External Commercial Borrowings (ECB-TL & Bonds)/ Loans such as term loans, syndicated loans, subordinated loans/ Bonds/ Notes such as unsecured/ secured Bonds, perpetual bonds, subordinated bonds/ any other instrument for raising foreign currency borrowings / Rupee denominated foreign currency borrowings," the state-run renewable energy financier stated in a BSE filing.

Prior to this, IREDA mentioned that its borrowing limit has been increased by Rs 5,000 crore to Rs 29,200 crore for FY25.

An analyst said the stock is showing near-term bullish strength while another suggested that it may climb up to Rs 200 levels in the medium term. "From a medium-term perspective, Rs 190-200 levels can be seen in IREDA shares," Jay Thakkar of ICICI Securities told Business Today.

"The stock has rebounded from the crucial support zone of Rs 144 and is showing signs of further upside towards Rs 188–200. It is indicating a near-term bullish strength, but remains below key resistance levels, making it an ideal buy-on-dip candidate. As long as IREDA sustains above Rs 150, the bullish outlook remains intact. However, a break below the said level would negate this positive view and could lead to further downside," said Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst at StoxBox.

The board approval for its borrowing programme came post-market hours today. Earlier in the day, IREDA shares shed 0.12 per cent to close at Rs 169.85. At this price, the stock has slipped 23.42 per cent on a year-to-date (YTD) basis.

The counter traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 58.34. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 29.79 against a price-to-book (P/B) value of 4.89. Earnings per share (EPS) stood at 5.71 with a return on equity (RoE) of 16.43. According to Trendlyne data, IREDA has a one-year beta of 1.5, indicating high volatility.

The company is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of December 2024, the government held a 75 per cent stake in it. The organisation offers 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.