IREDA shares fall despite plan to raise funds via bond issue

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) fell up to 4% on Wednesday after the NBFC said it was planning to raise unsecured, redeemable, non-convertible, non-cumulative, taxable bonds amounting to Rs 500 crore. IREDA stock slipped 3.80% to Rs 108.15 on BSE today. The firm saw 18.36 lakh shares changing hands amounting to a turnover of Rs 20.41 crore on BSE. Market cap of the firm fell to Rs 29,697 crore. At 11:35 am, the stock was trading 1.73% lower at Rs 110.49 on BSE.

IREDA’s bond issue consists of Rs 500 crore in base issue and Rs 1,500 crore in greenshoe option.

A greenshoe is the over-allotment option that allows companies to issue more bonds or raise more funds than the base issue size.

The bonds of IREDA will mature in 10 years or on December 22, 2033.

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“The borrowing programme for FY 2023-24 amounting to Rs 26,000 crore was approved by the Board in its meeting held on April 25, 2023. The intimation for the said Board meeting was sent to Stock exchanges on April 19, 2023. In line with the Board approved borrowing plan, IREDA is planning to raise unsecured, redeemable, non-convertible, non-cumulative, taxable bonds amounting to Rs. 500 c crore for cash at par,” said IREDA in a communication to bourses.

The funds to be raised from the issue of taxable bonds will be utilised for on lending towards the RE projects and other general corporate purposes, said IREDA adding that being a NBFC, fund raising through various sources is a part of normal business operations.

Shares of IREDA made a stellar market debut on November 29, listing at a 56.25% premium over the IPO issue price. IREDA stock listed at Rs 50 on BSE, a premium of 56.25% over the IPO issue price of Rs 32. The stock listed at Rs 50 on NSE.

The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The IPO was open for bidding between November 21 and November 23. The state-run PSU player raised a total of Rs 2,150.21 crore through the IPO route, which included a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 equity shares.

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