IREDA Q3: Loan Frenzy! Sanctions Explode 129%

IREDA Q3: Loan Frenzy! Sanctions Explode 129% The Indian Renewable Energy Development Agency (IREDA) reported a 41% growth in loan disbursements, reaching ₹17,236 crore in the December quarter. Provisional data indicates loan sanctions surged by an impressive 129% year-on-year (YoY) to ₹31,087 crore, compared to ₹13,558 crore during the same period last year, according to a statement released late Tuesday.

Loan disbursements also showed robust growth, increasing 41% YoY from ₹12,220 crore in the previous year. Additionally, IREDA’s outstanding loan book rose by 36%, totaling ₹69,000 crore as of December 31, 2024, compared to ₹50,580 crore the previous year.

Pradip Kumar Das, Chairman and Managing Director of IREDA, highlighted the organization’s strong performance, stating, “Our outstanding results demonstrate our steadfast dedication to advancing India’s renewable energy transition. The remarkable 129% growth in loan sanctions reflects stakeholders’ growing confidence in our abilities and our critical role in supporting green energy initiatives.”

IREDA Stock Surges 6% Following Business Updates; Loan Book Expands by 36%

Stock Market Today: Shares of the Indian Renewable Energy Development Agency (IREDA), a multibagger stock, gained nearly 6% on Wednesday, January 1, following the release of its provisional business updates.

Business Highlights

IREDA Q3: Loan Frenzy! Sanctions Explode 129%  IREDA reported provisional performance figures up to December 31, 2024, subject to audit, after market hours on Tuesday.

• Loan Sanctions: The company sanctioned loans totaling ₹31,087 crore until December 2024, a 129% increase compared to ₹13,558 crore sanctioned in the same period of 2023.
• Loan Disbursements: Disbursements reached ₹17,236 crore as of December 31, 2024, marking a 41% year-on-year (YoY) growth from ₹12,220 crore in the previous year.
• Outstanding Loan Book: The total loan book stood at ₹69,000 crore at the end of December 2024, reflecting a 36% YoY growth from ₹50,580 crore in December 2023.

Impact on Stock Price

IREDA Q3: Loan Frenzy! Sanctions Explode 129%  Following the business update, IREDA’s share price rose by 5.83%, reaching ₹227.70 on the BSE during early trading.

Despite facing corrections from its all-time highs due to broader market pressures and foreign institutional investor sell-offs, IREDA shares delivered 105% returns in 2024, solidifying their status as a multibagger investment.

Background

IREDA Q3: Loan Frenzy! Sanctions Explode 129%  Listed on stock exchanges in 2023 after a successful IPO, IREDA has emerged as a wealth generator for its investors. Established in 1987, IREDA is a Navratna public sector enterprise under the Ministry of New and Renewable Energy (MNRE). The company provides financial assistance and other support for renewable energy and energy efficiency projects

IREDA Q3 Update: Loan Sanctions Surge, Loan Book Near ₹70,000 Crore

The Indian Renewable Energy Development Agency (IREDA) reported its business performance for the October-December quarter, disclosing impressive growth figures in an exchange filing late Wednesday.

• Loan Sanctions: IREDA sanctioned ₹31,087 crore in loans during the quarter, marking a remarkable 129% increase from ₹13,558 crore in the same period last year.
• Loan Disbursements: Disbursements for the quarter rose by 41% year-on-year to ₹17,236 crore, compared to ₹12,220 crore in the December 2023 quarter.
• Outstanding Loan Book: As of the December quarter, IREDA’s loan book stood at ₹69,000 crore, a 36% increase from ₹50,580 crore at the end of December 2023.

IREDA Q3: Loan Frenzy! Sanctions Explode 129%  Additionally, IREDA’s stock performance has been strong. The company completed its first full year of listing in November 2024, with its stock price increasing 6x from the IPO price of ₹32, despite a 30% correction from its all-time high of ₹310.

In October 2024, IREDA received approval for establishing a wholly-owned subsidiary focused on its retail business, which will cover sectors like PM KUSUM, rooftop solar, electric vehicles, energy storage, and other green technologies.

IREDA’s board also approved raising ₹4,500 crore through a Qualified Institutional Placement (QIP), although no timeline has been provided for the fundraising.

Despite a 1.6% drop in share price on Tuesday to ₹215, the stock delivered a 105% return in 2024, reflecting significant growth over the year.