IREDA's stocks surged by more than 10 per cent after receiving the 'Navratna' status from the government
IREDA's share price surged by nearly 11 per cent after the government granted the public sector entity 'Navratna' status last week. The company reported a net profit of Rs 337.38 crore for the quarter ending in March, an increase of 33.03 per cent compared to the same period last year.
According to the criteria laid out by the government, Navratna companies have the authority to invest up to Rs 1,000 crore without needing explicit approval from the government. As of now, there are 14 Central Public Sector Enterprises falling in the 'Navratna' status.
At 11:15 am, the shares of the company were trading at Rs 185 price level, up by nearly 8.41 per cent on the National Stock Exchange.
"In pursuance to Regulation 30 of SEBI (Listing Operations and Disclosure Requirements) Regulations, 2015, this is to inform that Department of Public Enterprises (DPE) vide its letter dated April 26, 2024 has granted the ‘Navratna status’ to Indian Renewable Energy Development Agency Limited," the company stated in a press release.
Navratna companies have the liberty to invest up to Rs 1,000 crore or 15 per cent of their net worth in a single project without having to seek approval from the government. They also have the flexibility to allocate up to 30 per cent of their net worth within a year, as long as it stays below Rs 1,000 crore, without needing prior clearance.
On an annual basis, the shares of IREDA have surged by more than 200 per cent on the National Stock Exchange.