Posted on March 10, 2025, by Niftynews
Indian Renewable Energy Development Agency Ltd (IREDA Share) is drawing attention today following a recent update regarding its equity investment proposal in the Upper Karnali Hydro Electric Power Project in Nepal. IREDA stock ended at ₹149.70 on the Bombay Stock Exchange (BSE) in the previous session, with a market capitalization of ₹40,222 crore.
The RBI recent decision has left investors curious, as the central bank has not approved IREDA request for an equity investment in the joint venture. The Upper Karnali Hydro Electric Power Project is a significant initiative, and IREDA involvement in it was intended to strengthen its position in renewable energy projects internationally.
Details of the Upper Karnali Hydro Electric Power Project
The Upper Karnali Hydro Electric Power Project is a major venture between IREDA, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, Nepal Electricity Authority, and another Indian state-run company, SJVN Ltd. IREDA’s stake in the project was initially planned to be 5%, amounting to an equity investment of ₹174.22 crore.
The joint venture’s goal is to develop a 900 MW hydroelectric power plant in Nepal, which would significantly contribute to both India’s and Nepal’s energy needs. However, the RBI’s decision to withhold approval on IREDA’s equity investment has raised questions about the project’s funding and potential timeline.
Technical Overview of IREDA Stock
In terms of technical performance, IREDA stock shows a Relative Strength Index (RSI) of 32.3, indicating that the stock is neither overbought nor oversold. The RSI is a popular indicator used by traders to gauge the momentum of a stock. With an RSI below 30 generally considered an oversold condition and above 70 indicating overbought conditions, IREDA current position suggests that it might be in a neutral zone.
IREDA stock had touched an all-time high of ₹310 on July 15, 2024, but it has since seen a decline, reaching a 52-week low of ₹121 on March 14, 2024. Currently, at ₹149.70, the stock is showing moderate recovery but remains far below its peak.
IREDA Strong Loan Sanctioning and Disbursement Growth
Despite the recent setback with the RBI decision, IREDA has been demonstrating strong growth in other areas. The state-run financial body sanctioned loans worth ₹31,087 crore in the December 2024 quarter, a remarkable 129% growth compared to the ₹13,558 crore sanctioned in the same period last year. This growth reflects the increasing demand for renewable energy financing in India.
Furthermore, IREDA loan disbursements for the third quarter climbed by 41%, amounting to ₹17,236 crore, compared to ₹12,220 crore in Q3 of the previous year. This demonstrates IREDA increasing role in financing renewable energy projects, which is expected to further strengthen its market position.
As of the end of December 2023, IREDA loan book outstanding stood at ₹69,000 crore, a 36% increase from ₹50,580 crore in the previous year. These figures show the growing importance of IREDA in the renewable energy sector, both in terms of its role in financing and supporting green energy projects.
IREDA Market Position and Government Support
IREDA, a Mini Ratna Category-I government enterprise, operates under the administrative control of the Ministry of New and Renewable Energy (MNRE). The organization has been actively promoting renewable energy projects and energy efficiency initiatives for over 36 years, making it a key player in India green energy transformation.
Despite the current setback in its international venture, IREDA’s domestic achievements, particularly in loan disbursement and project financing, suggest that it continues to be a vital entity in the renewable energy sector. The company is likely to continue expanding its footprint in India and may eventually secure opportunities in international markets, provided the regulatory challenges can be overcome.
Outlook for IREDA Share
Looking forward, IREDA share are expected to continue fluctuating in response to developments such as the company’s involvement in new energy projects, changes in government policies, and further decisions by the RBI. While the decision on the Nepal investment is a short-term challenge, IREDA robust loan sanctioning and disbursement figures signal strong long-term growth prospects.
Investors should keep an eye on any further updates regarding IREDA international ventures and domestic performance, particularly in the renewable energy space. As the world increasingly focuses on sustainable energy, IREDA role as a financer of green projects may position the company for continued success in the coming years.
