IREDA shares soar 20% in a day, surge 166% from IPO debut
IREDA’s stock experienced a significant 20% surge in a single day, marking an impressive 166% increase from its IPO debut. Following its strong start, the public sector unit’s shares reached the upper circuit, reflecting the prevailing optimistic market sentiment towards PSU stocks.
This surge was propelled by the strategic launch of a retail division, focusing on sectors such as loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) initiatives, totaling Rs 58 crore. The stock reached the upper circuit at Rs 85 per share, indicating heightened demand. IREDA’s total turnover reached 210.51 million equity shares, with outstanding buy orders for 18.31 million equity shares on both the NSE and BSE.
IREDA CMD PK Das outlined the company’s ambitious plans, aiming to grow its loan book from approximately Rs 28,000 crores to Rs 1,35,000 crores by FY 2026. Emphasizing the focus on financing the entire value chain in the renewable energy sector, Das highlighted the strategic vision of the company.
IREDA’s IPO, oversubscribed by 38.80 times on the last day of the offer, has positioned the company with a market share of around 19% of the total installed renewable energy capacity in the country.
Analysts, inspired by government initiatives promoting the renewable energy sector, recommend long-term investments in IREDA. The company’s diversification and expansion into emerging green technologies such as green hydrogen, pumped hydro storage power plants, battery storage value chain, and green energy corridors contribute to the optimistic outlook for sustained growth in its loan book.
As the exclusive non-banking financial company in India dedicated solely to renewable energy, IREDA holds a unique position. Positioned as the primary NBFC committed to green financing in the nation, IREDA is well-positioned to capitalize on the substantial expansion within the renewable energy industry.
Noteworthy is IREDA’s impressive 58% CAGR growth in net profit during FY21-FY23. The capital-to-risk weighted asset ratio (CRAR) stood at 21.22% as of March 31, 2022, 18.82% as of March 31, 2023, and 20.92% as of September 30, 2023, reinforcing the company’s robust financial standing.
