IREDA Share Price: Perpetual Bonds Issuance and Financial Updates

Market Performance

Indian Renewable Energy Development Agency (IREDA), a state-owned renewable energy financier, introduced its first-ever perpetual bond to raise Rs 1,247 crore. The stock experienced an initial increase in early trading on March 20 but later declined.

Perpetual Bond Issuance

IREDA disclosed in an exchange filing on March 20 that it has issued perpetual bonds at an annual coupon rate of 8.4 per cent. This initiative aims to optimize the company's capital structure and leverage favourable market conditions. The organization described this move as a strategic effort to strengthen Tier-I capital, supporting the expansion of green energy infrastructure.

Borrowing Limit Expansion

Days before the perpetual bond issuance, IREDA's board approved an increase in its borrowing limit for FY25 to Rs 29,200 crore, up from Rs 24,200 crore. The additional borrowing will be raised through various instruments, including taxable bonds, perpetual debt instruments, term loans from banks, credit lines from international agencies, external commercial borrowings, and short-term bank loans.

Tax Refund Details

On March 20, IREDA reported receiving a tax refund of Rs 24.48 crore from the Income Tax Department. This refund pertains to partial relief granted for the Assessment Year (AY) 2011-12 by the Commissioner of Income Tax (Appeals). Additionally, the company stated that it is awaiting an outstanding refund of nearly Rs 195 crore, which has been approved for multiple assessment years, including 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19.

Summary

IREDA has taken a significant step toward capital optimization by issuing its first perpetual bonds. The company has also raised its borrowing limit for FY25 and received a notable tax refund. These developments are crucial in the company's financial planning and green energy financing initiatives.