IREDA Share Price Jumps After Firm Gets ‘Navratna’ Status

Shares of the state-run Indian Renewable Energy Development Agency (IREDA) experienced a notable surge of approximately 13 percent in early trading on April 29 following the announcement that the company has been conferred with the prestigious ‘Navratna’ status, according to a moneycontrol report.

The Department of Public Enterprises (DPE), through a communication dated April 26, has bestowed the coveted ‘Navratna status’ upon the Indian Renewable Energy Development Agency. This classification places PSUs into categories including Maharatna, Navratna, and Miniratna companies. Notably, Navratna companies are granted certain privileges, such as the ability to invest up to Rs 1,000 crore without requiring prior government approval.

Furthermore, Navratna entities possess the authority to allocate approximately 15 percent of their resources to a specific project or utilise up t30 percent of their net worth throughout the fiscal year, as long as it remains within the prescribed Rs 1,000 crore limit.

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Currently, there are a total of 16 listed ‘Navratna’ PSUs, which include prominent entities like Rail Vikas Nigam, HAL, ONGC, Nalco, and BEL.

IREDA, operating under the Ministry of New and Renewable Energy, serves as a non-banking financial institution dedicated to fostering, advancing, and providing financial support for initiatives related to new and renewable energy sources as well as energy efficiency and conservation projects.

In its financial report for the quarter ending March 31, 2024, IREDA disclosed a significant 33 percent surge in its consolidated net profit, amounting to Rs 337 crore. This marks a notable increase from the net profit of Rs 254 crore recorded in the corresponding period of the previous year.

Moreover, IREDA recently announced the attainment of its highest-ever annual loan sanctions and disbursements during the concluded financial year 2023-24.

Throughout the fiscal year, the company sanctioned loans totaling Rs 37,354 crore and disbursed loans amounting to Rs 25,089 crore. Consequently, this has resulted in a substantial growth of 26.71% in the loan book, which now stands at an impressive Rs 59,650 crore.

Source: moneycontrol

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