Ireda Shares Decline After Board Approves Rs 5,000 Crore QIP Floor Price

The Indian Renewable Energy Development Agency Ltd. (Ireda) saw its shares fall more than 2 percent on Friday following the board’s approval of a fundraising initiative worth up to Rs 5,000 crore through a qualified institutional placement (QIP).

As part of the decision, the board approved the preliminary placement document and the draft application form necessary for the QIP. The floor price has been fixed at Rs 173.83 per share, with a provision for a discount of up to 5 percent.

Merchant bankers managing the QIP include IDBI Capital Market Services Ltd., BNP Paribas, SBI Capital Markets Ltd., Emkay Global Financial Services Ltd., and Motilal Oswal Investment Advisors Pvt.

Ireda, established in 1987, is a government-owned financial institution under the Ministry of New and Renewable Energy. It provides financial assistance for renewable energy and energy efficiency projects across India, supporting sectors such as solar, wind, biomass, and small hydro.

On the trading front, the stock declined by as much as 2.23 percent to Rs 172.51 apiece before trimming losses to trade 1.44 percent lower at Rs 173.90 as of 09:34 a.m. In comparison, the NSE Nifty 50 remained largely flat.

The stock has dropped 2.47 percent over the past 12 months. Trading volume during the session was four times higher than its 30-day average, with the relative strength index recorded at 54.

According to Bloomberg data, of the two analysts tracking the stock, one has a ‘buy’ rating while the other recommends ‘hold’. The average 12-month consensus price target suggests a potential downside of 13.3 percent.