IREDA stock zooms 20% in a day to go up 166% from IPO price

After dream debut in IPO, IREDA stock rallied 20% in a single day to hit upper circuit
The elated man: Pradip Kumar Das, CMD, IREDA
The elated man: Pradip Kumar Das, CMD, IREDAPSUWatch (File)

New Delhi: (PSU Share News) The PSU Stocks are seeing a dream ride and IREDA is not at all an exception to the ongoing enthusiastic market sentiment. IREDA on Monday zoomed 166 percent over its issue price of Rs 32. Early in the day at around 11am IREDA was quoting at Rs 83.35 on the NSE, up 17 percent from previous closed with volumes over 16.3 crore shares. The move came on the back of the renewable energy PSU floating a retail division for providing loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors amounting to Rs 58 crore.

The share hit upper-circuit as soon as it touched Rs 85 per share mark.

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IREDA's stock experienced significant trading today, with a total turnover of 210.51 million equity shares. There are outstanding buy orders for 18.31 million equity shares on both the NSE and BSE. Currently, IREDA's stock price has risen by a remarkable 166 percent.

In an exclusive interview given to PSU Watch in April 2023, IREDA CMD PK Das had said that IREDA expects its loan book to grow from Rs 28,000 crores (approx.) to Rs 1,35,000 crores (approx.) by FY 2026, with financing to the entire value chain in RE sector.

Announcing it first here on PSU Watch that IREDA plans IPO in the third quarter of ongoing financial year, he said company is targeting to achieve its market share of more than 40 percent of RE sector debt funding by NBFCs by FY 2026.

The elated man: Pradip Kumar Das, CMD, IREDA
IREDA IPO subscribed 38.80 times on last day of offer

Currently, IREDA has a market share of financing to the tune of 19 percent (approx.) of the total installed RE capacity in the country.

Commenting on the dream debut of IREDA, analysts have recommended investing long-term in the stock considering GOI initiatives to promote the renewable energy sector.

According to Nirmal Bang, diversification and expansion in emerging green technologies such as green hydrogen, pumped hydro storage power plants, battery storage value chain, and green energy corridor provide scope for longer-term sustainability of high growth of its loan book.

The elated man: Pradip Kumar Das, CMD, IREDA
IREDA’s massive growth reflects team work & Power Ministry’s guidance: CMD PK Das

IREDA stands as the singular non-banking financial company in India exclusively dedicated to renewable energy. Positioned as the primary NBFC committed to green financing in the nation, IREDA occupies a unique space, positioning it as one of the limited entities capable of capitalizing on the substantial expansion within the renewable energy industry.

IREDA recorded a 58 percent CAGR growth in net profit during FY21-FY23. The capital-to-risk weighted asset ratio (CRAR) was 21.22 percent as of March 31, 2022, 18.82 percent as of March 31, 2023, and 20.92 percent as of September 30, 2023.

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