Active Stocks
Fri Jun 14 2024 15:58:47
  1. HDFC Bank share price
  2. 1,597.45 1.05%
  1. State Bank Of India share price
  2. 840.20 -0.44%
  1. Tata Steel share price
  2. 183.05 0.30%
  1. ICICI Bank share price
  2. 1,105.10 -0.20%
  1. Kotak Mahindra Bank share price
  2. 1,717.00 -0.54%
Business News/ Companies / News/  IREDA gets ‘Navratna' status: Why is it important for the public sector green financier?
BackBack

IREDA gets ‘Navratna' status: Why is it important for the public sector green financier?

IREDA's performance in the January-March quarter exhibited enhanced margins and improved asset quality.

In the March quarter, IREDA experienced a notable 26.8 per cent increase in assets under management, compared to the previous year.Premium
In the March quarter, IREDA experienced a notable 26.8 per cent increase in assets under management, compared to the previous year.

Indian Renewable Energy Development Agency (IREDA) on Friday said it was granted ‘Navratna’ status by the Department of Public Enterprises. 

A non-banking financial institution under the Ministry of New and Renewable Energy, IREDA is engaged in promoting, developing and extending financial assistance for setting up projects related to new and renewable sources of energy.

The Indian government grants Navratna status to premier public sector undertakings (PSUs), empowering them to execute significant investments of up to 1,000 crore without requiring approval from the central authority.

These firms are permitted to allocate up to 30 per cent of their net worth annually, provided it remains under 1,000 crore. Additionally, they have the option to participate in joint ventures, forge partnerships, and set up overseas subsidiaries.

Also read: HCL Technologies projects weaker year ahead than FY24

To qualify for Navratna status, a company must first attain the Miniratna category-I designation and be included in Schedule A of Central Public Sector Enterprises (CPSEs).

IREDA's performance in the January-March quarter exhibited enhanced margins and improved asset quality. Comparing year-on-year figures, IREDA witnessed a 32 per cent rise in net profit, while it remained consistent quarter-on-quarter at 337 crore.

In the March quarter, IREDA experienced a notable 26.8 per cent increase in assets under management (AUM) compared to the previous year, reaching 59,698 crore. Furthermore, when juxtaposed with the December quarter, the growth in AUM stood at 18 per cent.

IREDA shares ended 2.2 per cent higher on Friday's trading session, reaching 170.95 per share on the NSE. Year-to-date, IREDA shares have yielded a return of over 63 per cent, with the stock boasting a one-year return of 184 per cent. The stock was listed on exchanges last year on November 29, experiencing a remarkable surge of 87 per cent from its issue price, marking it as one of the standout listings of the year.

Also read: SBI Card Q4 results: Net profit rises 11% to 662 crore, revenue up 14% to 4,475 crore

Established in March 1987, the company offers financial assistance to projects that produce electricity using fresh and sustainable sources. The government holds a 75 per cent ownership stake in the company.

Recently, the company's board has approved the establishment of a subsidiary company to cater to retail business in renewable energy and emerging sectors such as PM KUSUM, rooftop solar and other B2C segments.

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Apr 2024, 08:25 PM IST
Next Story footLogo
Recommended For You