IREDA shares in focus after this development from the RBI

Shares of state-run Indian Renewable Energy Development Agency (IREDA) Ltd. will be in focus on Monday, March 10, after the company informed the exchanges about a letter received from the Reserve Bank of India (RBI).IREDA, in its exchange filing, stated that the RBI has not acceded to the company’s request of making an equity investment to develop and implement a 900 MW Upper Karnali Hydro Electric Power Project in Nepal.

The Upper Karnali Hydro Electric Power Project is a joint venture between IREDA, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, NEPAL Electricity Authority, and another state-run company SJVN Ltd. The JV agreement was signed earlier this year.
IREDA’s equity investment in the venture was supposed to be around ₹174.22 crore for a 5% stake and it was supposed to be entitled to nominate one director on the board of the JV company.The company had already received approval from the Department of Investment and Public Asset Management (DIPAM) for the said investment in January this year.

IREDA’s board had accorded in-principal approval for this investment in July last year. The company said that it will again make its case for the investment before the central bank.

Shares of IREDA ended 0.3% lower on Friday at ₹149.4. The stock has declined more than 50% from its peak of ₹310 last year and has also recently entered the Futures & Options (F&O) space.