Shares of Indian Renewable Energy Development Agency (IREDA) rose more than 19.97% in Monday’s trading session to ₹85 per share on NSE. This remarkable growth was accompanied by large trading volumes, and the shares witnessed exclusive buying interest. Over the last two trading days, IREDA’s stock has registered an impressive 32% rally.
The stock witnessed great trading activity today, with a total turnover of 210.51 million shares of stock. There are outstanding buy orders totaling 18.31 million equity shares on both the NSE and BSE. Currently, IREDA’s share price has increased by an impressive 166%, surpassing its issue price of ₹32 per share since its market debut on November 29.
IREDA has made a remarkable entry 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 consists of solar energy (30%). , followed by wind power (20.9%), state utilities (19.2%), and hydropower (11.5%).
IREDA stands as India’s only 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 take advantage of the great expansion in the renewable energy sector.
In a regulatory filing on Friday after the market closed, IREDA announced the establishment of its retail division. This strategic move is designed to strengthen 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.
In addition to participating in the IPO for possible listed gains, analysts suggested adopting a long-term investment approach in the shares, citing government initiatives aimed at strengthening the renewable energy sector. Despite the limited track record, due to its listing on November 29, some investors are expressing optimism that the stock is poised to reach the ₹100 mark in the near future.
Nirmal Bang suggests that the continued growth of its loan book in the long term can be ensured 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.
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Published: 11 Dec 2023, 15:50 IST