IREDA stock gains 10% to reach fresh record high, up 250 percent over IPO price

Indian Renewable Energy Development Agency Ltd (IREDA) continued its dream run on Wednesday, gaining for the sixth consecutive session and hitting a fresh all-time high.

The IREDA stock, which closed at Rs 63.04 on December 5, 2023, achieved a new lifetime high of Rs 112.16 on the Bombay Stock Exchange (BSE) after hitting a 10 per cent upper circuit today.

It may be noted that the stock has gained over 76 per cent in the past five trading sessions, while it is up over 250 per cent over its IPO price of Rs 32.

As a result, investors who were allotted the company’s shares during the IPO process have seen their wealth more than triple. As of now, the market capitalisation of the firm stands at over Rs 30,000 crore.

Will the dream run continue?

According to analysts, the stock could soon reach Rs 120 levels in the near term, but could face resistance at Rs 106-110 levels.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers told Business Today that he anticipates an immediate support level at Rs 92, with a resistance zone around Rs 110. He added that the stock may trade within the range of Rs 85 and Rs 120 in the coming months.

IREDA made a strong market debut on November 29, with a listing at Rs 50 on both BSE and NSE, representing a 56.25 per cent premium over the IPO issue price of Rs 32.

The IPO, which was open for bidding from November 21 to November 23, raised a total of Rs 2,150.21 crore. This included a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 equity shares.

The state-run PSU player attracted Rs 643.26 crore from 58 anchor investors, including Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, and other prominent entities.

IREDA, a Mini Ratna (Category – I) government enterprise under the Ministry of New and Renewable Energy (MNRE), has been actively contributing to the promotion and development of renewable energy projects for over 36 years.

Published By:

Koustav Das

Published On:

Dec 13, 2023

Leave a Reply

Your email address will not be published. Required fields are marked *