The Indian Renewable Energy Development
Agency or IREDA’s shares gained sharply, continuing its stellar run on the
stock market. With today’s profit, investors in its IPO have seen their wealth
more than triple.
IREDA shares rose to 15.41 per cent at
Rs 98.10 at around 11:10 am, which is more than 206 per cent higher than its
IPO price band of Rs 32.
The State-owned financial institution’s
shares have witnessed a robust rally of over 59 per cent in the past five
trading days.
Analysts had lately stated the stock has
the prospects to register further gains in the near term, given its strategic spot
that can help it capitalise on the rapid growth in the renewable energy sector
as Bharat’s sole renewable energy-focused state-owned NBFC.
It’s remarkable that the government has
set an ambitious aim of achieving 500 GW of renewable capacity by FY2030E,
leading to increased attention and investment in the renewable energy sector.
The company recently introduced a retail
division focused on promoting loans for the PM-KUSUM scheme, Rooftop Solar, and
other Business-to-Consumer (B2C) sectors.
Despite impressive plans from significant
players, analysts at Kotak Securities advised the execution of renewable
capacity addition needs acceleration to meet the goal. However, the sector’s
positive outlook is maintained due to the upcoming investment cycle.
Technical analysts are optimistic about
IREDA stock, citing support around Rs 73.5 and probable resistance at Rs 88.2.
Market experts estimated the stock to
trade within the range of Rs 60 and Rs 85 in the coming months. DRS Finvest
founder Ravi Singh predicts a near-term target of Rs 80, recommending a stop
loss at Rs 65.
IREDA had a strong market debut with a
56.25 per cent premium over the IPO issue price of Rs 32.
The IPO, with a price band of Rs 30-32,
raised a total of Rs 2,150.21 crore, including a fresh share sale of Rs
1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 equity shares.
The book running lead managers were IDBI
Capital Markets, BoB Capital Markets, and SBI Capital Markets. IREDA is
administratively controlled by the Ministry of New and Renewable Energy.
NE Watch Desk
