The Indian Renewable Energy Development Agency (IREDA) witnessed a continued surge in its stock price for the third consecutive trading session following the Reserve Bank of India’s (RBI) revised Priority Sector Lending (PSL) guidelines. On Tuesday, March 25, 2025, IREDA’s stock climbed 4% during intraday trading, building on Monday’s 10% gain.
IREDA Shares Rally for Third Consecutive Day After RBI’s Lending Guideline Reforms
RBI’s Policy Boost for Renewable Energy
The RBI’s updated PSL guidelines have expanded the scope of loans qualifying under the renewable energy category, allowing:
-
Bank loans of up to ₹35 crore for renewable energy projects, including power generation and public utilities.
-
Individual borrowers to avail loans of up to ₹10 lakh for renewable energy solutions such as rooftop solar installations.
This policy change has sparked increased investor interest in IREDA, a key player in renewable energy financing.
Massive Trading Volume & Stock Performance
On Monday, March 24, IREDA recorded a remarkable 7.3 crore shares changing hands, surpassing the combined volume of the previous five trading sessions. However, only 13% of the traded shares were marked for delivery, indicating strong speculative activity.
Currently, IREDA is trading at ₹176.48, reflecting a 3.8% increase, though still 40% below its all-time high of ₹310.
IREDA’s Growth Strategy
IREDA has been actively expanding its portfolio:
-
In October 2024, the agency announced plans for a wholly-owned retail subsidiary under PM-Suryaghar, PM-KUSUM, and EV financing initiatives.
-
During the December quarter, its loan book outstanding surged 36% YoY, reaching ₹69,000 crore, while sanctioned loans more than doubled from the previous year.
Outlook & Market Sentiment
With RBI’s policy shift favoring renewable energy financing, analysts expect strong tailwinds for IREDA’s growth. However, market volatility and delivery-based participation will be key factors in determining its long-term rally.
Add Business Connect magazine to your Google News feed
