IREDA share price surges 4% after raising INR 1,500 cr via issuance of bonds
Notable because
This bond issuance follows IREDA’s IPO in November 2023, whereby it raised INR 1,290 crore via a fresh issue of shares. The IPO generated a significant amount of interest and was oversubscribed to the tune of approx. 38x. While the bond issue was oversubscribed as well, the lower oversubscription rate of 2.65x can be partly attributed to lower retail investor participation levels in India’s bond market in general.
What to look out for in the months ahead
FY 24 saw India auctioning over 40 GW of renewable energy capacity. This is more than double the 18 GW of RE that was installed in the year. Achieving India’s renewable energy targets will clearly require significant amounts of capital. Will we see further capital raises by IREDA in the ongoing financial year, particularly on the equity side now that its share price is more than 5x the November issue price?