IREDA shares have fallen only twice in the ten trading days since their first public offering. Before Monday’s 20% jump, the stock closed 10% higher on Friday.
After closing in a 20% upper circuit on Monday, shares of Indian Renewable Energy Development Agency (IREDA) climbed another 20% on Tuesday. After reaching an intraday high of 102.02 on Tuesday, the stock has now tripled from its IPO price of 32. Within ten days of launching, the stock had tripled from its IPO price. The stock went public on November 29 and closed 87.5% higher than its issue price.
After the LIC IPO in May of last year, IREDA’s IPO was the first PSU IPO. The issue was approximately 40 times subscribed to, making it the seventh most subscribed PSU IPO of the decade. IREDA shares have fallen only twice in the ten trading days since their first public offering. Before Monday’s 20% jump, the stock closed 10% higher on Friday.
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With Tuesday’s increase, IREDA’s market value surpassed 25,000 crore. IREDA shares have already changed hands in the trading session on Tuesday, compared to 21 crore shares on Monday and 26 crore shares on Friday. On Monday, IREDA made headlines when it announced the opening of its retail section, which will focus on the PM-KUSUM scheme, rooftop solar, and other B2C lending categories.
Pradip Kumar Das, the company’s CMD, stated that renewable energy bonds will account for 1-2% of the company’s Assets Under Management (AUM) allocation to domestic pension and insurance funds. He also stated that the corporation is increasing climate finance in order to satisfy India’s energy transformation ambitions.
“Overall, they are a well-managed company, and as a result, investors are bidding on this company at a high price to earnings multiple and price to book valuation ratio.” However, at the current level (85), it is quite well identified and valued, and I would wait for a correction. There are several appealing options in the NBFC and financing market, particularly in microfinance, PSU banks, and even large-cap banks if you lack risk appetite. So, as far as IREDA is concerned, I would wait and see,” Elixir Equities’ Dipan Mehta said.
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