President of India’s portfolio owns 75 per cent stake: Company receives 'Navratna' status – scrip gains over 12 per cent today!

From its 52-week low of Rs 50 per share to today’s intraday high price of Rs 192 per share, the stock gave multibagger returns of 284 per cent.

Indian Renewable Energy Development Agency (IREDA), a public limited government company that finances renewable energy projects, was conferred the prestigious ‘Navratna’ status by the Department of Public Enterprises (DPE) on April 26, 2024. This recognition comes alongside IREDA’s strong financial performance in the January-March quarter, marked by improved margins, better asset quality, and a 32 per cent year-on-year increase in net profit to Rs 337 crore. IREDA’s assets under management (AUM) have also witnessed significant growth, rising by 26.8 per cent year-on-year and 18 per cent quarter-on-quarter to Rs 59,698 crore.

The Indian government grants ‘Navratna’ status, a mark of distinction, to high-performing public sector undertakings (PSUs). These PSUs are empowered to make significant investments, up to Rs 1,000 crore per project or 30 per cent of their net worth annually (capped at Rs 1,000 crore), without central government approval. This operational freedom extends to forming joint ventures, establishing foreign subsidiaries, and forging alliances, all of which contribute to their growth and global competitiveness. However, to be considered for ‘Navratna’ status, a PSU must already possess ‘Miniratna’ category I status and be included under Schedule A of Central Public Sector Enterprises (CPSEs).

IREDA, a government-owned entity, plays a crucial role in India's renewable energy sector. Established in 1987, it promotes and finances projects in various renewable sources, including solar, wind, hydro, and bioenergy. Its motto, "Energy forever," reflects its commitment to a sustainable future. IREDA is a financial services company that provides financial assistance for renewable energy projects in India. The company offers a variety of financial products, including loans, guarantees, and debt refinancing. IREDA is committed to helping India transition to a greener future, and its financing schemes are designed to facilitate this transition.

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Earlier, in a significant boost for India's renewable energy sector, the Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) signed a Memorandum of Understanding (MoU) to collaborate on financing various renewable energy projects. This MoU goes beyond just co-lending and loan syndication, encompassing joint efforts in managing borrower accounts, working towards competitive loan terms, and enabling investments in each other's bonds. This partnership builds on IREDA's existing successful collaborations with other banks, providing a wider range of financial options and expertise to support the development of clean energy projects across India.

The President of India’s portfolio owns 2,01,58,23,529 shares or 75 per cent stake in the company. From its 52-week low of Rs 50 per share to today’s intraday high price of Rs 192 per share, the stock gave multibagger returns of 284 per cent. The stock was listed on Wednesday, November 29, 2023, at Rs 60 per share.

Today, shares of IREDA gained 12.51 per cent to Rs 192 per share with an intraday high of Rs 192 and an intraday low of Rs 182.05 per share from its previous closing of Rs 170.65 with a spurt in volume by more than 3 times on BSE. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.