Multibagger from its 52-week low: This green energy financing company signs MoU with Indian Overseas Bank – know more here!

Multibagger from its 52-week low: This green energy financing company signs MoU with Indian Overseas Bank – know more here!

Kiran Shroff
/ Categories: Trending, Multibaggers

The stock gave multibagger returns of 148.45 per cent from its 52-week low of Rs 49.99 per share.

Indian Renewable Energy Development Agency Ltd (IREDA) and Indian Overseas Bank (IOB) have joined hands through the signing of a Memorandum of Understanding (MoU). The agreement, inked at IREDA's Business Centre in New Delhi, sets the stage for collaborative efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects across the nation.

The MoU was signed by Dr R. C. Sharma, General Manager, IREDA and Shri Anil Kumar, Chief Regional Manager, IOB, in the presence of Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, Shri Ajay Kumar Srivastava, MD & CEO of IOB, Dr Bijay Kumar Mohanty, Director (Finance), IREDA and senior officials from both organizations.

Shri Pradip Kumar Das, CMD, IREDA stated, "This strategic partnership between IREDA and Indian Overseas Bank marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.”

Encompassing a range of services, the MoU includes provisions for co-lending and co-origination support for all renewable energy projects. The partnership aims to streamline loan syndication and underwriting processes, management of Trust and Retention Account (TRA) for IREDA borrowers, and work towards fixed interest rates over a 3 – 4 years period for IREDA borrowings.

This collaboration builds upon IREDA's successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited and Bank of Maharashtra. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country

IREDA, a government-owned entity, plays a crucial role in India's renewable energy sector. Established in 1987, it promotes and finances projects in various renewable sources, including solar, wind, hydro, and bioenergy. Its motto, "Energy forever," reflects its commitment to a sustainable future. IREDA is a Mini Ratna (Category - I) company. IREDA is a financial services company that provides financial assistance for renewable energy projects in India. The company offers a variety of financial products, including loans, guarantees, and debt refinancing. IREDA is committed to helping India transition to a greener future, and its financing schemes are designed to facilitate this transition.

The stock was listed on Wednesday, November 29, 2023. The stock was listed at Rs 60 per share. The President of India owns 2,01,58,23,529 shares or 75 per cent stake in the company. The company has a market of Rs 33,382 crore and reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23).

Today, shares of IREDA gained 3.93 per cent to Rs 124.20 per share with an intraday high of Rs 125.55 and an intraday low of Rs 113.95. The shares of the company have a PE of 38.7x, an ROE of 15.4 per cent and an ROCE of 8.2 per cent. The stock gave multibagger returns of 148.45 per cent from its 52-week low of Rs 49.99 per share.

Disclaimer: The article is for informational purposes only and not investment advice. 

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