IREDA Board approves new unit for retail businesses like PM Kusum

New Delhi: State-owned Indian Renewable Energy Development Agency Ltd. (IREDA) received approval from DIPAM on October 10, 2024, and the Ministry of New and Renewable Energy to establish a wholly-owned subsidiary for its retail business. The retail business will include PM KUSUM, rooftop solar, and other consumer-focused segments in renewable energy, such as electric vehicles, energy storage, green technologies, and energy efficiency, the company stated in a filing.

The company had reported its results for the September quarter on October 10. IREDA's NII or net interest income (NII) or core income during the September quarter rose 52% to Rs 547 crore, compared to Rs 360 crore during the same quarter last year.

IREDA's asset quality remained stable in comparison to the June quarter. Gross NPA remained unchanged at 2.19%, while its Net NPA stood at 1.04% from 0.95% in the June quarter. The renewable energy financier's debt-equity ratio stood at 5.85x from 5.83x in the previous quarter.

According to its recently released shareholding pattern, IREDA's retail shareholders increased their stake in the September quarter, during which the stock made a peak of Rs 310 and corrected from those levels. At the end of the September quarter, retail investors held a 19.88% stake in IREDA, compared to the 18.59% stake they held at the end of the June quarter.

The government still held a 75% stake in the company. India's Mutual Funds still do not have a significant exposure to IREDA with their stake remaining constant at 0.2%.