IREDA share jumps 7% on pacts with SJVN, GMR Energy for project in Nepal

IREDA shares zoom: Shares of Indian Renewable Energy Development Agency (IREDA) were buzzing in trade on Tuesday, September 10, 2024. The IREDA scrip surged as much as 7.21 per cent to hit an intraday high of Rs 239.35 per share.

The uptick in IREDA share price came after the company said that it has inked initial agreements with SJVN and GMR Energy for the development and implementation of the 900 MW Upper Karnali hydro-electric project in Nepal.

The deal aims to boost regional energy security via the development of renewable energy infrastructure, according to a statement.

The project holds strategic importance for IREDA as it will help harness Nepal's vast hydropower potential while reinforcing the company’s dedication to renewable energy development.

“Our investment in this important hydropower project underscores IREDA's ongoing commitment to advancing renewable energy initiatives. This collaboration not only accelerates the development of Nepal's hydropower sector but also strengthens regional energy cooperation, supporting our shared goal of sustainable growth,” said Pradip Kumar Das, chairman and managing director of IREDA.

IREDA is a public sector enterprise established in 1987. It operates under the ownership of the Government of India and falls under the administrative oversight of the Ministry of New and Renewable Energy (MNRE). 

IREDA's primary mission is to promote and facilitate the development of projects related to renewable energy sources and energy efficiency. 

As a Non-Banking Financial Institution (NBFC) and a Mini Ratna (Category – I) enterprise, it plays a crucial role in providing financial assistance and other essential services to support the growth of green power capacity. 

Additionally, IREDA finances the establishment of solar manufacturing units and encourages the adoption of renewable energy to foster sustainable development.

Last year in November, IREDA conducted an initial public offering (IPO) and got listed on the NSE and BSE, marking a major milestone in its history. IREDA stock listed at Rs 50 on BSE, a premium of 56.25 per cent over the IPO issue price of Rs 32.

At 11:29 AM, shares of IREDA were trading 4.48 per cent higher at Rs 233.25. By comparison, BSE Sensex was up 0.23 per cent at 81,749.27 levels.