IREDA shares surge over 27% in five sessions, here’s what driving the rally
Upstox
2 min read • Updated: April 5, 2024, 11:26 PM
Summary
Shares of IREDA Ltd have surged more than 450% compared to its IPO price of ₹32 per piece. The stock was listed at a more than 56% premium on the NSE and BSE at ₹50 apiece on November 29, 2023.
Indian Renewable Energy Development Agency (IREDA) shares surged over 14% on Friday, April 5, to touch an intraday high of ₹181.15 apiece on the Nation Stock Exchange.
Shares of the state-owned company have hit the upper circuit on three occasions in the last five day's trade while maintaining a steady upward trend this week.
After a gap up opening at ₹162 apiece on the NSE, IREDA stock surged as much as 14.39% to hit an intraday high at ₹181.15 amid heavy volumes. IREDA shares closed Friday's trade at ₹176.4, up 11.4% on the NSE. In the last five sessions, IREDA shares have surged over 23%.
Here’s what has led to the recent rally in IREDA share prices:
Strong loan book in FY24
The recent surge in IREDA share prices has been led by impressive growth numbers in the company's business performance report for FY24. IREDA has posted its highest-ever loan sanction worth ₹37,354 crore in FY24. The company's total loan book stood at ₹59,650 crore, a 26.71% jump from ₹47,076 crore in the preceding financial year. IREDA disbursed loans worth ₹25,089 crore, a 15.94% jump from ₹21,639 crore in FY23.
Revision in upper circuit limit
The recent revision in the upper circuit limit for IREDA has also contributed to the rally in the company’s share prices. The stock exchanges revised the upper circuit limit for the state-owned company to 20% from earlier 5%.
Board nod to ₹24,200 crore borrowing
The stock has been in focus of the investors after the company's board approved a borrowing programme of up to ₹24,200 crore for FY 2024-25.
IREDA Shares rise over 450% from IPO price
Shares of IREDA Ltd have surged more than 450% compared to its IPO price of ₹32 per piece. The stock was listed at a more than 56% premium on the NSE and BSE at ₹50 apiece on November 29, 2023.
Indian Renewable Energy Development Agency (IREDA) is a central public sector enterprise (CPSE) under the administrative control of the Ministry of New and Renewable Energy. The company has been categorised as a Mini Ratna (Category-I) firm. The Government of India presently holds a stake of 75% in IREDA.