IREDA stock hits record high after gaining for sixth consecutive session

Indian Renewable Energy Development Agency’s (IREDA) dream run on the stock market continued for the seventh consecutive day, with shares hitting a fresh peak of over Rs 123.

The shares of the company have already turned into a multibagger, rising 71.25 per cent in the past five trading sessions and over 84 per cent over its listing price of Rs 50.

While IREDA shares were off the day’s high by 10:50 am due to profit booking, they were still trading over 3 per cent higher at Rs 115.50 apiece. That’s a whopping 260 per cent gain over its IPO price of Rs 32 per share.

IREDA’s stellar performance over the past few trading sessions has got investors thinking about their future strategy for the stock.

Will IREDA stock gain further?

According to market analysts, the stock is poised to hit levels around Rs 120 in the short term, although it might encounter resistance in the Rs 106-110 range, given that it is likely to see profit booking at some point.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, shared insights with Business Today, stating that he foresees immediate support at Rs 92, with a resistance zone approximately between Rs 106 and Rs 110. Patel suggested that the stock’s trading range in the coming months could fluctuate between Rs 85 and Rs 120.

IREDA IPO details

IREDA marked a bumper entry into the stock market on November 29, debuting at Rs 50 on both BSE and NSE, reflecting a 56.25 per cent premium over the IPO issue price of Rs 32.

During the bidding period from November 21 to November 23, the IPO garnered a total of Rs 2,150.21 crore, comprising a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) involving 26,87,76,471 equity shares.

As a government enterprise categorised as a Mini Ratna (Category – I) under the Ministry of New and Renewable Energy (MNRE), IREDA has actively contributed to promoting and developing renewable energy projects for over 36 years.

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

Published By:

Koustav Das

Published On:

Dec 14, 2023

Leave a Reply

Your email address will not be published.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