NEW DELHI (India CSR): In the vibrant landscape of India’s renewable energy sector, the Indian Renewable Energy Development Agency Limited (IREDA) stands as a linchpin, financing projects that power the nation’s green revolution. Established in 1987, IREDA has evolved from a government-backed entity to a publicly listed company, with its share price serving as a barometer for the renewable energy financing sector. Since its initial public offering (IPO) in November 2023, IREDA’s stock has experienced significant growth and volatility, reflecting the dynamic interplay of market sentiment, financial performance, and government policies. This article provides an in-depth analysis of IREDA’s share price history, financial metrics, recent developments, analyst perspectives, and future outlook, offering valuable insights for investors, analysts, and enthusiasts of India’s green energy transition.
IREDA Share Price & Financial Performance (2023–2025)
| Category | Details |
|---|---|
| Company Name | Indian Renewable Energy Development Agency Limited (IREDA) |
| Incorporation Year | March 26, 1987 |
| Sector | Renewable Energy Financing |
| IPO Date | November 2023 |
| IPO Price | Rs 32 per share |
| Listing Date | December 4, 2023 |
| Listing Gains | Opened at Rs 50+ within months post-IPO |
| 52-Week High (2025) | Rs 310.00 |
| 52-Week Low (2025) | Rs 137.01 |
| Current Price (As of June 11, 2025) | Rs 181.45 |
| 1-Year Return | 0.68% |
| 3-Month Return | 27.8% |
| Market Sentiment | Mixed (FII stake dropped, public holding increased) |
| Technical Signal | 200-day EMA crossover & Heikin-Ashi bullish pattern (June 2025) |
| Recent QIP | Rs 2,005.90 Cr raised (June 2025) at Rs 165.14/share |
| LIC Participation | Acquired 50% of QIP stake |
| Total Assets (FY25) | Rs 79,734.95 crore |
| Total Equity (FY25) | Rs 10,266.54 crore |
| Debt-to-Equity Ratio (FY25) | 6.31 |
| Interest Coverage Ratio (FY25) | 1.52 |
| FY25 Revenue | Rs 6,755.69 crore |
| FY25 Net Profit | Rs 1,698.34 crore |
| PAT Margin (FY25) | 25.18% |
| ROE (FY25) | 16.54% |
| ROCE (FY25) | 46.86% |
| Dividend Status | No dividends (reinvestment-focused) |
| Key Projects Financed | Bhadla Solar Park (2,500 MW), Tamil Nadu Wind Projects (1,500 MW) |
| Promoter Holding | 75% (Government of India) |
| FII Holding (Mar 2025) | 1.74% (down from 2.69%) |
| Public & Others (Mar 2025) | 22.76% (up from 21.89%) |
| Future Prospects | Aligned with India’s 500 GW renewable energy target by 2030 |
The Indian Renewable Energy Development Agency Limited (IREDA), incorporated on March 26, 1987, is a Mini Ratna (Category – I) company under the administrative control of the Ministry of New and Renewable Energy (MNRE). Registered with the Reserve Bank of India (RBI) as a non-deposit-taking Non-Banking Financial Company (NBFC) and classified as a Public Financial Institution (PFI), IREDA is India’s leading green financing entity. Its mission is to promote, develop, and provide financial assistance for renewable energy and energy efficiency projects, including solar, wind, hydro, biomass, waste-to-energy, and emerging technologies like green hydrogen.
IREDA has financed some of India’s largest renewable energy projects, such as the 2,500 MW Bhadla Solar Park in Rajasthan and the 1,500 MW wind energy projects in Tamil Nadu. With a loan book exceeding Rs 50,000 crore, the company plays a pivotal role in achieving India’s renewable energy targets. In 2016, IREDA was granted ‘Navratna’ status by the Government of India, enhancing its autonomy in financial and operational decision-making. This status underscores its strategic importance in driving India’s transition to a sustainable energy future.
Share Price Performance
IREDA made its stock market debut on December 4, 2023, following an IPO priced at Rs 32 per share. The IPO, which aimed to raise Rs 2,150.21 crore, was oversubscribed 38.8 times, reflecting strong investor confidence in IREDA’s growth potential. Since listing, the stock has experienced significant volatility, driven by market dynamics, financial results, and sector-specific developments.
The following table illustrates IREDA’s recent daily share price performance:
| Date | Open | High | Low | Close | Adj Close | Volume |
|---|---|---|---|---|---|---|
| Jun 11, 2025 | 181.90 | 184.48 | 179.50 | 181.96 | 181.96 | 18,378,098 |
| Jun 10, 2025 | 182.45 | 183.50 | 181.25 | 181.17 | 181.17 | 18,016,734 |
| Jun 09, 2025 | 175.50 | 175.90 | 169.25 | 174.23 | 174.23 | Not Available |
Since its listing, IREDA’s share price has followed a dynamic trajectory:
- Post-IPO Surge (Dec 2023 – Early 2024): After listing at Rs 32, the stock surged to approximately Rs 50 within months, fueled by strong investor demand and optimism about India’s renewable energy sector.
- Consolidation and Correction (Mid-2024): The stock corrected to around Rs 40 as investors booked profits and concerns about high valuations surfaced.
- Steady Growth (Late 2024): By mid-2024, the share price climbed to Rs 100, driven by positive quarterly results and supportive government policies.
- Peak and Volatility (Early 2025): The stock reached a 52-week high of Rs 310.00 in early 2025, likely due to strong earnings or sectoral tailwinds, before dropping to a low of Rs 137.01, possibly due to profit-taking or adverse market sentiment.
- Stabilization (Mid-2025): As of June 11, 2025, the stock trades at Rs 181.45, reflecting a 1-year return of 0.68% and a 3-month gain of 27.8%.
Technical analysis indicates bullish signals, with a 200-day moving average crossover on June 9, 2025, historically associated with an average 30-day gain of 6.19%. A Heikin-Ashi bullish pattern formed on June 10, 2025, further suggesting potential short-term upside.
Financial Health
IREDA’s financial performance underscores its robust position in the renewable energy financing sector. For the fiscal year ending March 2025, the company reported:
- Total Income: Rs 6,755.69 crore
- Net Profit: Rs 1,698.34 crore
- Profit After Tax (PAT) Margin: 25.18%
- Return on Equity (ROE): 16.54%
- Return on Capital Employed (ROCE): 46.86%
- Return on Assets (ROA): 2.12%
The company’s balance sheet reflects total assets of Rs 79,734.95 crore and total equity of Rs 10,266.54 crore, with a debt-to-equity ratio of 6.31. While the high debt level is a concern, IREDA’s interest coverage ratio of 1.52 indicates its ability to manage debt obligations. The company spent 61.41% of operating revenues on interest expenses and 1.21% on employee costs for the year ending March 31, 2025.
IREDA’s revenue primarily comes from interest income on loans disbursed to renewable energy projects. Its diverse loan portfolio, spanning solar, wind, hydro, and biomass projects, ensures risk diversification. As a government-owned entity, IREDA benefits from implicit sovereign support, enhancing its creditworthiness and ability to secure funding at competitive rates.
The following table summarizes IREDA’s annual financial performance over recent years:
| Year | Revenue (Cr) | Net Profit (Cr) | Operating Margin (%) | ROE (%) | ROCE (%) |
|---|---|---|---|---|---|
| Mar 2023 | 3,483 | 865 | 24.8 | 14.5 | 40.2 |
| Mar 2024 | 5,000 | 1,252 | 25.0 | 15.8 | 44.5 |
| Mar 2025 | 6,755.69 | 1,698.34 | 25.18 | 16.54 | 46.86 |
Despite consistent profits, IREDA does not pay dividends, focusing instead on reinvesting earnings to support its growth objectives (Screener).
Recent Developments
In a significant move, IREDA raised Rs 2,005.90 crore through a Qualified Institutional Placement (QIP) from June 5 to June 10, 2025. The issue, with a base size of Rs 1,500 crore, was subscribed 1.34 times, issuing 12.15 crore equity shares at Rs 165.14 per share, a 5% discount to the floor price of Rs 173.83. The funds aim to strengthen IREDA’s tier-I capital and Common Equity Tier-I (CET-1) capital adequacy ratio, supporting its expansion in the renewable energy sector.
Following the QIP announcement, IREDA’s share price dipped 1.5% to Rs 180.38 on the National Stock Exchange, likely due to the discounted issue price. However, earlier reports noted a 2% rise after the Life Insurance Corporation (LIC) secured a 50% stake in the QIP, indicating mixed market reactions.
IREDA’s involvement in financing key projects, such as solar parks and green hydrogen initiatives, aligns with India’s National Green Hydrogen Mission, further enhancing its growth prospects.
Analyst Views and Market Sentiment
Analyst coverage for IREDA is limited, with one analyst providing a HOLD recommendation and a target price of Rs 265 from Anand Rathi, suggesting potential upside from the current price of Rs 181.45. Technical indicators are bullish, with a 200-day Exponential Moving Average (EMA) crossover on June 9, 2025, and a Heikin-Ashi bullish pattern on June 10, 2025, indicating short-term upward momentum.
Market sentiment is mixed, with foreign institutional investor (FII) holdings decreasing from 2.69% in June 2024 to 1.74% in March 2025, while other investor holdings increased from 21.89% to 22.76%. The high promoter holding of 75% provides stability but may limit liquidity for retail investors.
Future Outlook
IREDA’s growth is closely tied to India’s ambitious renewable energy targets, including 500 GW of non-fossil fuel capacity by 2030 and 50% of energy requirements from renewable sources. As a leading financier, IREDA is well-positioned to capitalize on the increasing demand for green financing. Its recent QIP strengthens its capital base, enabling it to fund larger projects and expand its loan portfolio.
However, investors should be mindful of risks, including high debt levels, potential delays in project execution, and increased competition from other NBFCs and financial institutions. Regulatory changes and shifts in government policies could also impact IREDA’s operations. The company’s government backing provides a safety net, but careful debt management will be crucial for sustained growth.
You Learn
IREDA’s share price history since its IPO in November 2023 reflects the dynamic nature of India’s renewable energy sector. From a listing price of Rs 32 to a current price of Rs 181.45, the stock has shown significant growth potential, tempered by periods of volatility. With robust financials, a strategic role in green financing, and recent capital-raising efforts, IREDA is poised for growth. However, its high debt-to-equity ratio and sector-specific risks warrant caution. For investors seeking exposure to India’s renewable energy boom, IREDA offers a compelling opportunity, provided they carefully weigh the risks and rewards.
(India CSR)
