Shares of the Indian Renewable Energy Development Agency (IREDA) gained 3% on Tuesday after the company signed a deal with SJVN and GMR Energy to develop a hydro project in Nepal.

What Happened: IREDA signed initial pacts with the other companies to develop and implement a 900-megawatt Upper Karnali hydroelectric project in Nepal. The collaborative venture aims to enhance regional energy security by developing a renewable energy structure. 

The project will help the company use Nepal's vast hydropower potential. IREDA's board had approved the decision to snap up 10% each in terms of shareholding in each of the Karnali project and Karnali Transmission Company, which will add up to a total investment of ₹290 crore in the special purpose vehicles. 

See Also: Tata Power Commences Production Of Solar Cell At Manufacturing Facility In Tamil Nadu

In August, IREDA's board approved the proposal to raise ₹4,500 crore through a follow-on public offer (FPO), qualified institutional placement (QIP), rights issue or preferential issue. 

IREDA is a mini-Ratna company under the Ministry of New and Renewable Energy. The company offers a wide range of financial products and services, both fund-based and non-fund-based. The company supports renewable energy projects, including equipment manufacturing and related activities. 

Price Action: Shares of IREDA rose 3.38% to ₹230.71 on Tuesday morning. 

Shares of SJVN also rose 2.65% to ₹129.55 on the bourses.

Read Next: Tata Electronics And Tokyo Electron Join Forces To Strengthen Semiconductor Infrastructure