IREDA Q4 Update: Loan book growth slows further to 22%; stock in focus

Shares of Indian Renewable Energy Development Agency

Ltd. (IREDA), will be in focus on Wednesday, April 1, after the company disclosed its business update for the January-March period.

In an exchange filing, IREDA highlighted that the loans sanctioned by the company during the quarter grew by 9% on a year-on-year basis to ₹51,883 crore, compared to ₹47,453 crore during the same quarter last year.

Disbursement of loans increased to ₹34,946 crore, from ₹30,169 crore last year, implying a growth of 16% from the corresponding period.

IREDA's loan book outstanding at the end of the year stood at ₹93,075 crore, which is a 22% advance from the ₹76,282 crore that it stood at during the fourth quarter last year.

The company does not disclose details about its asset quality in the business update.

IREDA on March 30 said it has signed a facility agreement with Sumitomo Mitsui Banking Corporation (SMBC) to raise external commercial borrowings (ECBs) worth ¥28 billion.

The facility, arranged through SMBC's Singapore branch acting as the mandated lead arranger and bookrunner, includes a greenshoe option of up to ¥12 billion. The borrowing is structured as a five-year unsecured loan, aimed at strengthening IREDA's funding base to support its renewable energy financing activities.

The company said the agreement was executed on March 30, with the loan yet to be drawn down. The transaction does not involve any related-party elements, according to the regulatory filing.

Shareholding for the quarter that ended in March is yet to be disclosed. At the end of the December quarter, the government had a 71.76% stake in the company.

Shares of IREDA ended 4.82% lower on Monday at ₹108.8. The stock is down from its previous QIP price of ₹165 apiece. The stock is down 22% so far this year.