IREDA share price hits 20% upper limit
The shares of Indian Renewable Energy Development Agency (IREDA) rose over 19.97% on Monday’s trading session to ₹85 per share on NSE. This remarkable uptick was accompanied by substantial trading volumes, and the stock witnessed exclusive buyer interest. Over the last two trading days, the shares of IREDA recorded an impressive rally of 32%.
Shares of Indian Renewable Energy Development Agency (IREDA) shares surged 20 per cent to hit the upper circuit at Rs 85 on the National Stock Exchange (NSE).
The state-owned financial institution’s stock has witnessed a remarkable rally of 32 per cent in the past five trading days. It may be noted that IREDA’s current stock price has soared by 166 per cent from its issue price of Rs 32 per share since its market debut on November 29.
The stock has witnessed substantial trading activity today, with a total turnover of 210.51 million equity shares. There are outstanding buy orders totaling 18.31 million equity shares on both the NSE and BSE. Presently, IREDA’s stock price has surged by an impressive 166%, surpassing its issue price of ₹32 per share since its market debut on November 29.
It may be noted that the company recently launched a retail division aimed at emphasising loans for the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.
It is also worth mentioning that the government has set an ambitious target of achieving 500 GW of renewable capacity by FY2030E, leading to increased focus and investment in the renewable energy sector.
IREDA made a notable entrance into the capital market, marking the first public sector company to do so in over a year since the debut issue of Life Insurance Corporation of India in May 2022. The majority of IREDA’s asset portfolio comprises solar energy (30%), trailed by wind power (20.9%), state utilities (19.2%), and hydropower (11.5%).
According to analysts at Kotak Securities, despite impressive plans from key players, the execution of renewable capacity addition needs acceleration to reach the target. The sector’s positive outlook is maintained due to the upcoming investment cycle.
Technical analysts suggest a bullish outlook for IREDA stock, with support around Rs 73.5 and potential resistance at Rs 88.2. Market experts anticipate the stock to trade within the range of Rs 60 and Rs 85 in the coming months. DRS Finvest founder Ravi Singh told Business Today that he predicts a near-term target of Rs 80, advising a stop loss at Rs 65.
IREDA stands as India’s sole non-banking financial company (NBFC) exclusively dedicated to renewable energy (RE). As the largest pure-play green financing NBFC in the country, IREDA occupies a unique position, positioning itself among the select few entities well-equipped to leverage the substantial expansion in the renewable energy sector.
IDBI Capital Markets, BoB Capital Markets, and SBI Capital Markets were the book running lead managers, and IREDA is administratively controlled by the Ministry of New and Renewable Energy (MNRE).
In a regulatory filing on Friday after the close of the market, IREDA announced the establishment of its retail division. This strategic move is designed to reinforce the company’s focus on extending loans to beneficiaries in the PM-KUSUM scheme, Rooftop Solar projects, and other sectors catering to Business-to-Consumer (B2C) needs.
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In addition to participating in the IPO for potential listing gains, analysts have suggested adopting a long-term investment approach in the stock, citing government initiatives aimed at bolstering the renewable energy sector. Despite the limited charting history, given its listing on November 29, some investors express optimism that the stock is poised to reach the ₹100 mark in the near future.
Nirmal Bang suggests that the sustained growth of its loan book in the long term can be secured through diversification and expansion into emerging green technologies. These technologies include green hydrogen, pumped hydro storage power plants, the battery storage value chain, and the development of green energy corridors.
