In a stunning feat, newly listed PSU stock Indian Renewable Energy Development Agency (IREDA), has not only made a significant mark on the market but also rewarded early investors with extraordinary returns in less than two months since its IPO.
Retail investors who secured an allocation in the initial public offering saw wealth grow massively, making IREDA a prominent performer in a short period of time.
Shares of IREDA, India’s largest green finance NBFC, made its debut on Indian exchanges on November 29, 2023, listing at ₹60 per, 87.5% premium compared to the issue price of ₹32. Since its listing, the stock has maintained a robust upward trajectory, never dipping below its listing price.
Also Read: The rally in PSU stocks continues: RITES, Bank of India, IREDA and 9 others rise up to 13%; check full list
In today’s trading session, the stock hit a record high of ₹169.80 per, marking its fifth consecutive day of gains. With the current market price of ₹169.80, the stock is up a stellar 430.6% from its IPO price and 183% from its list price.
Looking at monthly performance, the stock advanced 57.4% in December, and in the current month to date, it is up 65%. With its strong performance, the stock secured the top position in the S&P BSE IPO index.
In terms of financials, the company posted a 67% jump in its net profit to ₹335.54 crore in Q3FY24, driven by consistent growth in the loan book and significant reduction in net non-performing assets (NPAs) to 1.52% in Q3 FY24 from 2.03% in Q3 FY23.
Also Read: Budget expectations from 2024 Highlights: Healthcare, auto, real estate, agriculture and other sectors share their wish list
The company’s income from operations increased to ₹1,253.19 crore in the third quarter of the current fiscal year of ₹868.97 crore in Q3 FY23.
The company’s loan book improved by 33% to ₹50,579.67 crores of ₹37,887.69 crore in the same quarter a year ago. Its net worth also rose by 45.49% to ₹8,134.56 crores from ₹5,591 crore in the year-ago period.
IREDA provides innovative financing in RE and energy efficiency, conservation, and environmental technologies. It is a wholly owned Government of India (“GoI”) undertaking under the administrative control of the Ministry of New and Renewable Energy (the “MNRE”).
Among power financing NBFCs, the company has the largest share of credit towards the RE sector except for Power Finance Corporation, which is also present in sectors such as infrastructure, roads, mining, and others, while the company is completely focused on the RE- sector .
Also Read: Pradhanmantri Suryoday Yojana: 1 crore homes to have solar panels, says PM Modi
The outlook for India’s RE sector is positive, with major policy announcements and ambitious targets. India has unveiled an ambitious roadmap for its energy future, aiming to raise its non-fossil energy capacity to an impressive 500 GW by 2030.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More or less
Published: 25 Jan 2024, 13:43 IST