Blockbuster listing of IREDA | locked in upper circuit at Rs 60
The Indian Renewable Energy Development Agency (IREDA) surged 87 percent on its market debut on November 29 backed by strong market conditions, healthy IPO subscription figures.The stock listed at a higher-than-expected price of Rs 50 on the National Stock Exchange and locked in upper circuit at Rs 60. Analysts had expected IREDA to list at around 35 percent premium over the issue price.
After a stellar post-listing performance, shares of the Indian Renewable Energy Development Agency Limited (IREDA) experienced a 10% ripen in today’s trading session, settling at ₹108.30 apiece. This correction follows a period of significant gains since its listing on Indian exchanges on November 29 at ₹60 per share, reflecting an impressive 87.5% premium over the issue price of ₹32. The stock unfurled its upward trajectory for the next 11 sessions, reaching a record upper of ₹123.30 per share.
The initial public offering (IPO) of IREDA witnessed robust demand from a diverse range of investors, with a subscription rate of 38.8 times during the three-day prompting period from November 21 to November 23.
Calculating from the listing price, the stock exhibited a remarkable 100% gain, latter at ₹120.30 per share in the previous session.
Whenever I'm looking at #IREDA, this video comes into my mind pic.twitter.com/nUcU3UkkNt
— IPO India (@india_ipo) December 13, 2023
The no-go rally prompted the National Stock Exchange (NSE) to seek refinement from IREDA on December 14. In response, the visitor stated that it possesses no undisclosed positive or material information that could impact trading worriedness or volume behavior. IREDA emphasized that the fluctuations in the stock’s price and volume are entirely market-driven.
On December 8, IREDA spoken the launch of a retail semester focused on providing loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors. This move aligns with the company’s transferral to fostering renewable energy initiatives and expanding its reach to retail consumers.
IREDA, established as a non-banking financial visitor (NBFC) in 1987, operates under the ownership of the Government of India (GoI) and falls under the legalistic tenancy of the Ministry of New and Renewable Energy (MNRE). Unlike other power financing NBFCs, IREDA has a unshared focus on the renewable energy (RE) sector, making it a prominent player in providing innovative financing solutions for RE and energy efficiency projects.
In wing to its primary role in financing renewable energy ventures, IREDA is recognized for having the largest credit share among power financing NBFCs specifically defended to the RE sector. This sets it untied from entities like Power Finance Corporation, which extends its reach vastitude renewables to sectors such as infrastructure, roads, and mining.
Financially, IREDA has demonstrated robust performance in recent fiscal years. For the fiscal years FY21, FY22, and FY23, the visitor reported total incomes of ₹2,655 crore, ₹2,860 crore, and ₹3,482 crore, respectively.
As IREDA undergoes a period of profit booking and market scrutiny, the company’s resilience and transferral to driving renewable energy initiatives remain pivotal factors for investors and stakeholders alike. The renewable energy sector’s unfurled growth and the company’s strategic moves in the retail space position IREDA for sustained relevance and impact in India’s evolving energy landscape.
