IREDA Stock Performance: Signs of a Strong Surge in IREDA, Loan Distribution Reaches Close to ₹65,000 Crore: What Lies Ahead?

IREDA Stock Performance: Indian Renewable Energy Development Agency (IREDA) has witnessed an impressive 287.33% surge in its stock since its listing on the Indian stock market on November 29, 2023. However, the stock has been on a downward trend for the past month, which is expected to end soon, thanks to the strong financial results of the first half of FY 2025 released by the company. IREDA has approved loans worth ₹17,860 crore in this half, marking a 303% growth from last year, which could soon reflect positively in its stock performance.

IREDA Stock Performance

Highlights:

• IREDA stock surged by 287.33%, with a 62.71% return over the last 6 months.
• Approved loans worth ₹17,860 crore in Q2 of FY 2025.
• Loan book increased to ₹64,500 crore, reflecting a 36% growth.
• Plans to raise ₹4,500 crore for green energy storage and ammonia projects.
• The company has sought permission from the government to reduce its 75% stake by 7%.

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Impressive Half-Year Results by IREDA: Major Financial Growth

IREDA has released its results for the second quarter of FY 2025, which ended on September 30, 2023. During this period, the company reported a remarkable increase in loan approvals and distribution. IREDA approved loans worth ₹17,860 crore, which is 303% higher than the same period last year. Additionally, the company distributed loans worth ₹9,787 crore in this half, showing a 56% growth compared to the previous year.

Growing Loan Distribution and Loan Book

IREDA’s loan book has also seen significant growth. With a 36% rise compared to last year, the loan book now stands at ₹64,500 crore. These positive financial numbers indicate IREDA’s solid stability and robust business strategy, which could attract more investors to the company’s shares.

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Plans to Raise Funds for New Projects

IREDA is expanding its business beyond just solar and wind energy. The company is now venturing into new energy projects like energy storage and green ammonia. For this, it plans to raise ₹4,500 crore. IREDA may use an FPO (Follow-on Public Offering) or other financial instruments to gather these funds. The company has sought approval from the government to reduce its 75% stake by 7% to facilitate this fundraising initiative.

IREDA Stock Outlook: Will It See a Rally?

Though IREDA stock has witnessed a dip recently, the company’s strong financials and business expansion plans suggest that the stock could see a resurgence in the near future. The company’s investment in green energy projects and new ventures could be a key attraction for investors.

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FAQ (Common Questions about IREDA):

1. How is IREDA’s stock performing currently?
IREDA stock surged by 287.33% after its listing on November 29, 2023, though it has been in a downtrend for the past month.

2. How have IREDA’s financial results been?
In the second quarter of FY 2025, IREDA approved loans worth ₹17,860 crore, a 303% increase from last year. The company’s loan book stands at ₹64,500 crore.

3. In which sectors is IREDA expanding?
IREDA is now expanding into energy storage and green ammonia projects, beyond its existing solar and wind energy ventures. The company plans to raise ₹4,500 crore for these projects.

4. Is IREDA’s stock worth investing in?
Considering the company’s recent financial growth and its plans for business expansion, IREDA stock appears to be an attractive investment opportunity.

5. How big is IREDA’s loan book?
As of September 2023, IREDA’s loan book has grown to ₹64,500 crore, marking a 36% increase compared to the previous year.