Indian Renewable Energy Development Agency Limited (IREDA) is a Government of India Enterprise under the Ministry of New and Renewable Energy. Established in 1987, IREDA is a non-banking financial institution (NBFC) that provides financial assistance for projects related to renewable energy are:
1) Loans only for Green Projects: It gives money to companies that work on Solar Power (electricity from sunlight), Wind Power (electricity from wind), Hydro Power (electricity from water), and Biomass.
2) Supporting New-Age Technology: It also provides loans to new sectors like Electric Vehicles (EV), EV Charging stations, and Green Hydrogen.
3) Fulfilling Government Targets: The Indian government dreams of reducing carbon pollution in the country, and IREDA supplies the money to make that dream come true.
The Government of India holds a majority stake around 72% in the company and (Promoter) stake in IREDA has been completely stable since the June 2024 quarter, and there has been no change in it since then.
The company exceptionally stable financials in every Quarter, a very good credit profile, is owned by the Government of India, it is currently categorized as a Mid-Cap stock with Current Market Capitalization Around Rs 32,278 Crores.
IREDA is highly appealing if you want to invest purely in India’s green energy supercycle. You can invest in it through a SIP and you will need to track it quarterly to make good returns, because it is currently going through consolidation and this stock has all the qualities to be a multibagger.
Note: Confirm with your advisor before making any investment. I have only shared my view on the basis of records and the future of India. I am not SEBI registered.