Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. will be in focus on Thursday, March 20, after the company launched its first issue of “perpetual bonds.”

IREDA, the state-run renewable energy financier, plans to raise ₹1,247 crore through this perpetual bond issue. The company has fixed an annual coupon rate of 8.4% for the bond issue.

“The issuance of perpetual bonds is a strategic move aimed at enhancing IREDA’s tier-I capital, ensuring a stronger financial foundation to support the rapid expansion of India’s green energy infrastructure,” the PSU stated in an exchange filing.

A perpetual bond, like its name, is a bond that has no maturity date and is neither redeemable, but continues to pay a steady interest forever.

Additionally, IREDA also announced that it has received a refund of ₹24.48 crore from the Income Tax Department towards partial relief granted by the Commissioner of Income Tax (Appeals) for Assessment Year 2011-12.

The company further said that a refund of another ₹195 crore is under process for similar relief provided by the CIT for four other assessment year periods, and is yet to be received.

Shares of IREDA have risen 8.4% over the last five trading sessions, after the company announced that it will increase its borrowing limit by ₹5,000 crore for the current financial year earlier this week.

Shareholders of IREDA have already approved the ₹5,000 crore fund raise through the Qualified Institutional Placement (QIP) route. However, there is no clarity yet on when will the issue be launched.

Despite this recent recovery, shares of IREDA are still down 32% so far in 2025. The stock has halved from its all-time high of ₹310, which it had surged to in 2024. Yet, the stock is still well above its IPO price of ₹32.