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.
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