Shares of the Indian Renewable Energy Development Agency (IREDA) surged 4% higher on 24 June after the company announced that it had raised Rs 1,500 crore through bond issuance. 

The bonds issued by the public sector undertaking consisted of a base issue of Rs 500 crore and a green shoe option of Rs 1,000 crore. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and two months. 

In its regulator filing, the company said that the issue was oversubscribed by 2.65 times. 

Shri Pradip Kumar Das, Chairman & Managing Director, said “We are happy with the overwhelming response to our bond issuance. The oversubscription by 2.65 times underscores the trust and confidence that investors have in IREDA’s vision and its crucial role in driving the renewable energy growth in the country.”

He further added that the successful fundraising will help the company further strengthen their efforts in financing green energy projects and contribute to the country’s goal of achieving 500 gigawatt (GW) non-fossil fuel installed capacity target by 2030.

IREDA is a Mini Ratna (Category – I) PSU under the Ministry of New and Renewable Energy. It offers financial help and other services for projects related to renewable energy and energy efficiency.

IREDA IPO was launched last November. The company sold its shares at Rs 32 each in the primary market. IREDA shares had a great start on the stock market, opening at Rs 60 and showing a listing gain of 87.5%. The PSU stock hit a record high of Rs 215 on 6 February this year. 

At 11:31 am, IREDA shares were trading 2.2% higher at Rs 191.66 on NSE.