IREDA stock declines for second consecutive day, dips 8%; here’s why
IREDA shares witnessed a decline of 7.78%, reaching ₹101.30 apiece in today’s trade, marking the stock’s second consecutive day of decline. The shares began their downward trend after reaching an all-time high of ₹123.20 apiece on December 14. Since then, the stock has lost 16.70% of its value. Investors have been booking profits following a significant surge in shares post listing.
The stock made its debut on Indian exchanges on November 29, listing at ₹60 apiece, against its issue price of ₹32. In less than two weeks post listing, the stock experienced a remarkable 105.33% surge. With the current market price standing at ₹102 apiece, it is trading 219% higher than its IPO price.
The IPO garnered significant demand across investor segments, experiencing an impressive subscription rate of 38.8 times during the three-day bidding window from November 21 to 23.
IREDA (Indian Renewable Energy Development Agency) is an NBFC established in 1987 to provide innovative financing in RE and energy efficiency, conservation, and environmental technologies. It is a wholly owned Government of India (“GoI”) enterprise under the administrative control of the Ministry of New and Renewable Energy (the “MNRE”).
Also Read: Retail investors in top gear at IPOs, drive oversubscriptions
Among power financing NBFCs, the company has the largest share of credit towards the RE sector other than Power Finance Corporation, which is also present in sectors such as infrastructure, roads, mining, and others, while the company is completely focused on the RE sector.
On December 08, the company launched a retail division for providing loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.
Meanwhile, competitors of the company, such as Power Finance Corporation and Rural Electrification Corporation (REC), have also achieved multibagger returns this year.
Also Read: REC, PFC, Rail Vikas Nigam among 14 PSU stocks that rallied between 100% and 250% in CY23
Power Finance Corporation shares skyrocketed 246% this year so far, while those of REC zoomed 256% in the same period. The upswing in power stocks is attributed to a substantial rise in power demand amid increased economic activities, proving advantageous for power sector financing companies.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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Published: 26 Dec 2023, 12:30 PM IST
