IREDA Share Price Surges to 3-Week High Amid Bond Issuance and Tax Refund

Market Performance

IREDA's share price increased by 8.4% on March 24, 2025, reaching ₹167.90 per share, the highest level in three weeks. This rise marks the second consecutive session of gains, supported by increased trading volumes. Over the previous week, the company's share price climbed nearly 11%, recording its most significant weekly gain of the year.

Despite the recent recovery, IREDA's stock remains 46% below its peak of ₹310 per share, reached in July 2024. The company's shares had experienced significant volatility in the past seven months, falling by 42%. In March alone, the stock rebounded by 21% from its monthly lows.

Key Developments

IREDA recently issued perpetual bonds totalling ₹1,247 crores at an annual coupon rate of 8.40%. This move aims to strengthen its capital structure and leverage favourable market conditions. Additionally, on March 19, 2025, the company received a tax refund of ₹24.48 crore from the Income Tax Department. This refund pertains to partial relief granted by the Commissioner of Income Tax (Appeals) for the relevant Assessment Year2011-12.

Further tax refunds amounting to approximately ₹195 crore are still pending. These refunds are linked to similar reliefs for Assessment Years 2010-11, 2012-13, 2013-14, and 2015-16 through 2018-19.

The company also announced that its board will convene on March 25, 2025, to review and consider the borrowing plan for the financial year 2025-26.

Company Overview

Founded in 1987, IREDA is a non-banking financial company (NBFC) specializing in financing renewable energy projects, energy efficiency initiatives, and environmental technologies. It operates under the authority of the Ministry of New and Renewable Energy and is wholly owned by the Government of India.

Summary

IREDA's share price has shown a notable recovery in March 2025, rising 21% from monthly lows and reaching a three-week high of ₹167.90. This follows the issuance of perpetual bonds worth ₹1,247 crore and the receipt of a ₹24.48 crore tax refund. Despite these recent gains, the stock remains significantly below its July 2024 peak. The company's board will discuss the borrowing plan for the upcoming fiscal year. IREDA continues to play a key role in financing renewable energy projects in India as a government-owned entity under the MNRE.