IREDA shares fall 2.1% as NSE revokes inclusion in NIFTY 500, Midcap 100 and other indices
Upstox
2 min read • Updated: March 20, 2024, 12:21 PM
Summary
As NSE revoked inclusion of IREDA from seven indices due to non-compliance of SEBI portfolio concentration norms, the shares of the renewable energy company were trading at ₹126.55, down 2.16%.
The National Stock Exchange (NSE) on Wednesday revoked recently-listed Indian Renewable Energy Development Agency's (IREDA's) inclusion from seven indices due to non-compliance of SEBI portfolio concentration norms.
Following this development, shares of IREDA were trading at ₹126.55, down 2.16%, on the NSE at 12:11 pm. Intraday, the stock recorded a low of ₹124.40.
In a press release, NSE said IREDA breached one of the requirements of SEBI portfolio concentration norms for equity exchange-traded funds (ETFs) and index funds related to impact cost. Hence, the stock exchange revoked the February 28 decision to include IREDA in the below-mentioned indices.
After the NSE's action, the stock will no longer be included in NIFTY 500, Midcap 150, Midcap 100, NIFTY 200, Large Midcap 250, Mid Smallcap 400 and Total Market.
The changes will come into effect from March 28, 2024.
In place of IREDA, BSE will be included in Midcap 150, Midcap 100, NIFTY 200 and Large Midcap 250.
V-Guard Industries has also become part of Nifty 500, Nifty Smallcap 250, and Nifty MidSmallcap 400 following a change made by IREDA.
IREDA shares were listed at ₹32 in November 2023 and reached a high of ₹214.80 on February 6, 2024. However, the stock has dropped due to some profit booking.
In Q3FY24, IREDA's net profit surged by 67% to ₹335.54 crore due to growth in loan book and reduction in net non-performing assets (NPAs) to 1.52% from 2.03% year-on-year (YoY).
The revenue from operations for the quarter ending in December 2023 also jumped 44.21% to ₹1,253 crore in comparison to ₹868.98 crore in Q3FY23.