Shares of Indian Renewable Energy Development Agency Ltd (IREDA) surged over 10% on Thursday after the company announced that its board will consider a proposal to raise up to Rs 4,500 crore through a share issuance.
On the NSE, IREDA’s stock rose by 10.19% to reach Rs 263.30 per share, while on the BSE, it jumped 10.07% to Rs 262.95. During intraday trading, the shares hit a high of Rs 265.75 on the BSE and Rs 265.70 on the NSE, marking an increase of over 11%.
The broader market also showed positive movement, with the BSE Sensex climbing 242.61 points, or 0.30%, to 81,147.91, and the NSE Nifty gaining 74.95 points to settle at 24,845.15.
IREDA, which operates under the Ministry of New & Renewable Energy, revealed on Wednesday that its board will review the plan to raise Rs 4,500 crore during its meeting on August 29. The capital could be raised through various methods, including a Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, or Preferential Issue, pending statutory and government approvals.
This fundraising initiative is particularly important as India aims to achieve 500 GW of renewable energy capacity by 2030, requiring the addition of about 50 GW each year. IREDA’s role in financing renewable energy projects makes this capital raise a critical step towards meeting the country’s ambitious energy targets.
