IREDA shares rise 4% amid market crash; here’s why

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) gained 4% in early deals today after the government-owned firm said it has inked a memorandum of understanding (MoU) with Indian Overseas Bank for co-lending in green energy financing.

In the current session, IREDA shares zoomed 3.89% to Rs 124.15 on BSE. Market cap of the firm climbed to Rs 32,898 crore. IREDA saw 46.36 lakh shares changing hands amounting to a turnover of Rs 56.17 crore on BSE.

The stock surged 4.44% to a record high of Rs 127.50 in the previous session.

It fell to a record low of Rs 49.99 on November 29, 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 72.2, signaling it's trading in the overbought zone.

"The MoU sets the stage for collaborative efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects," said IREDA.

Pradip Kumar Das, CMD, IREDA said, "This strategic partnership between IREDA and Indian Overseas Bank marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund largescale renewable energy projects, aligning with the Hon'ble Prime Minister's COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030."

Shares of IREDA listed at a premium of 56.25% to the issue price at Rs 50 on November 29. The stock listed at Rs 50 on NSE.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.

Meanwhile, Indian equity benchmarks crashed in Wednesday's early deals amid weak global cues. Sensex slipped 1,045 points or 1.43 per cent to trade at 72,084, while the NSE Nifty was down 313 points or 1.42 per cent to trade at 21,719.

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