Shares of Indian Renewable Energy Development Agency (IREDA) shares surged 20 per cent to hit the upper circuit at Rs 85 on the National Stock Exchange (NSE).
The state-owned financial institution’s stock has witnessed a remarkable rally of 32 per cent in the past five trading days. It may be noted that IREDA’s current stock price has soared by 166 per cent from its issue price of Rs 32 per share since its market debut on November 29.
As the company’s shares continue to impress on Dalal Street, investors are now wondering whether IREDA has more to offer.
Analysts have said that IREDA occupies a strategic position in capitalising on the rapid growth in the renewable energy sector as India’s sole renewable energy-focused state-owned NBFC.
It may be noted that the company recently launched a retail division aimed at emphasising loans for the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.
It is also worth mentioning that the government has set an ambitious target of achieving 500 GW of renewable capacity by FY2030E, leading to increased focus and investment in the renewable energy sector.
According to analysts at Kotak Securities, despite impressive plans from key players, the execution of renewable capacity addition needs acceleration to reach the target. The sector’s positive outlook is maintained due to the upcoming investment cycle.
Technical analysts suggest a bullish outlook for IREDA stock, with support around Rs 73.5 and potential resistance at Rs 88.2. Market experts anticipate the stock to trade within the range of Rs 60 and Rs 85 in the coming months. DRS Finvest founder Ravi Singh told Business Today that he predicts a near-term target of Rs 80, advising a stop loss at Rs 65.
IREDA made 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.
IDBI Capital Markets, BoB Capital Markets, and SBI Capital Markets were the book running lead managers, and IREDA is administratively controlled by the Ministry of New and Renewable Energy (MNRE).
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