Indian Renewable Energy Development Agency Ltd (IREDA) witnessed a strong rally on March 24, 2025, as its share price surged 8.4% to ₹167.90, marking a three-week high. The rally came amid increased trading volumes and positive financial developments, boosting investor sentiment.

The stock closed last week with an 11% gain, making it the best-performing week of the year so far. This sharp recovery is part of a broader rebound, with IREDA’s stock price climbing 21% from its March lows. Despite this, it remains 46% below its peak of ₹310, recorded in July 2024.

Recent Events at IREDA

Successful Perpetual Bond Issuance

IREDA recently issued its first-ever perpetual bonds, raising ₹1,247 crore at an annual coupon rate of 8.40%. This move is aimed at strengthening the company’s capital structure.

Upcoming Board Meeting on Borrowing Plan

IREDA’s board is scheduled to meet on March 25, 2025, to discuss the borrowing plan for the financial year 2025-26. The outcome of this meeting is expected to influence future stock performance and strategic decisions.

The company also announced that it received a ₹24.48 crore refund from the Income Tax Department for the assessment year 2011-12. Additionally, an estimated ₹195 crore is expected from similar reliefs granted for other assessment years. This development has provided financial relief and improved investor confidence.

IREDA’s Stock Performance Over the Last Year

IREDA’s journey in the stock market has been eventful since its listing. After debuting at ₹32 per share, the stock skyrocketed to ₹310 in July 2024, before facing a significant correction due to market volatility and regulatory challenges. In early 2025, the broader renewable energy sector faced hurdles, including global policy uncertainties, but IREDA has managed to stabilize and recover in recent weeks.

Market Challenges and Outlook

Despite the recent rebound, IREDA’s stock has faced pressure from regulatory setbacks, including the Reserve Bank of India’s decision to deny its request for equity investment in a key hydroelectric project in Nepal. Additionally, concerns over its exposure to Gensol Engineering, a solar plant construction firm, have impacted investor sentiment.

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