State-owned Indian Renewable Energy Development Agency (IREDA), a key player in renewable energy financing, has introduced its first-ever perpetual bond to raise ₹1,247 crore. The move led to a slight rise in the company’s stock during early trading on March 20, but the gains were short-lived as shares later dipped into negative territory.
IREDA announced in a stock exchange filing on March 20 that the bonds carry an annual interest rate of 8.4%. Calling this a significant step, the company highlighted that it aims to optimize its capital structure while leveraging favorable market conditions.
The public sector unit (PSU) described the bond issuance as a “strategic move” to boost its Tier-I capital, supporting the expansion of green energy projects. IREDA’s Chairman and Managing Director, Pradip Kumar Das, emphasized that strengthening the company’s financial base with perpetual bonds will enhance its ability to fund renewable energy initiatives, aiding India’s transition to cleaner energy.
This development follows IREDA’s recent board decision to increase its borrowing limit for FY25 to ₹29,200 crore, up from ₹24,200 crore. The additional funds will be raised through various financial instruments, including taxable bonds, perpetual debt instruments, bank loans, credit lines from international agencies, external commercial borrowings, and short-term bank loans.
In a separate update, IREDA also announced on March 20 that it received a tax refund of ₹24.48 crore on March 19 from the Income Tax Department. The refund pertains to partial relief granted by the Commissioner of Income Tax (Appeals) for the 2011-12 financial year. Additionally, IREDA is awaiting nearly ₹195 crore in refunds for multiple assessment years, including 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19.
After experiencing a steep 55% decline from its peak in July, IREDA’s stock has shown signs of recovery in recent days, breaking a six-day losing streak on March 19.
