Home Business IREDA has been awarded ‘Navratna’ status: 

IREDA has been awarded ‘Navratna’ status: 

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These companies possess the authority to invest up to ₹1,000 crore. IREDA, a Non-Banking Financial Institution, focuses on promoting, developing, and providing financial support for projects related to new and renewable energy sources as well as energy efficiency/conservation.

In a filing with the stock exchanges, the public sector Indian Renewable Energy Development Agency (IREDA) announced on Friday that it had been awarded the ‘navratna’ status by the government.

These companies are empowered to invest up to ₹1,000 crore. IREDA, a Non-Banking Financial Institution, focuses on promoting, developing, and extending financial support for projects related to new and renewable sources of energy as well as energy efficiency/conservation. The IREDA stock closed at ₹170.65, marking a 2.03% increase from Thursday’s closing price, on the Bombay Stock Exchange on Friday.

“Empowering India’s Energy Sector: IREDA and the Navratna Status”:

It is a non-banking financial institution under the Ministry of New and Renewable Energy, focuses on promoting, developing, and extending financial assistance for projects related to new and renewable energy sources.

The Indian government bestows Navratna status upon leading public sector undertakings (PSUs), granting them authority to undertake significant investments up to ₹1,000 crore without central approval.

These companies can allocate up to 30% of their net worth annually, capped at ₹1,000 crore. They also have the flexibility to engage in joint ventures, partnerships, and establish overseas subsidiaries.

IREDA
Mint

To be eligible for Navratna status, a company must first achieve Miniratna category-I status and be listed in Schedule A of Central Public Sector Enterprises (CPSEs).

“IREDA’s Strong Performance: Q1 Highlights and Asset Growth”: 

IREDA demonstrated improved margins and asset quality in the January-March quarter. Year-on-year, the company saw a 32% increase in net profit, while maintaining consistency quarter-on-quarter at ₹337 crore.

In the March quarter, IREDA saw a significant 26.8% rise in assets under management (AUM) compared to the previous year, reaching ₹59,698 crore. Additionally, compared to the December quarter, AUM growth stood at 18%.

IREDA shares closed 2.2% higher in Friday’s trading session, reaching ₹170.95 per share on the NSE. Year-to-date, IREDA shares have generated a return exceeding 63%, with a one-year return of 184%. The stock debuted on exchanges on November 29 last year, witnessing an impressive surge of 87% from its issue price, making it one of the notable listings of the year.

Established in March 1987, the company provides financial aid to projects generating electricity from renewable sources. The government owns a 75% stake in the company.

The board has recently sanctioned the creation of a subsidiary to serve retail operations in renewable energy and emerging sectors like PM KUSUM, rooftop solar, and other B2C segments.

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