The stock market is buzzing with IREDA’s latest move – a Rs 5,000 crore borrowing plan that has sent shares climbing nearly 5% in today’s trading. But despite this short-term boost, the share price of the company has seen a steep decline of 35% year-to-date (YTD).
Let’s take a look at the key takeaway that investors need to know Rs 5,000 Cr borrowing plan
IREDA’s board has approved a Rs 5,000 crore enhancement in its borrowing limit for FY 2024-25, raising the total borrowing cap from Rs 24,200 crore to Rs 29,200 crore. This additional capital will be sourced through multiple channels, including taxable bonds, Tier-II bonds, external commercial borrowings (ECB), and credit lines from international agencies. The prior goal of this is to strengthen its financial base and support its lending operations in the renewable energy sector.
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Just last week, IREDA faced a hurdle when the Reserve Bank of India declined its request to invest in Nepal’s 900 MW Upper Karnali Hydro Electric Power Project. While this decision may have dampened some expansion plans, the company seems focused on strengthening its domestic position with the fresh borrowing plan.
Stock performance – A volatile ride
While today’s surge is a relief, the broader trend remains noticeable. Over the past five days, IREDA’s share price has gained marginally 1%, but it has fallen by 10% in the last month. On a one-year basis, the stock has still managed to post an 8% gain.
Year-to-date, the stock is down 35%, marking the sharp correction in 2025.
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Despite the long-term gains, the sharp correction, the stock has struggled to maintain momentum and is currently trading below all key moving averages i.e 5-day, 20-day, 50-day, 100-day, and 200-day.
52-week highs and lows
IREDA’s 52 week high is Rs 310 per share, while its 52 week low is Rs 124. At its current price, the stock is trading nearly 50% below its 52 week high and is approximately 30% above its 52 week low.
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