IREDA shares rose for sixth straight session, hit record high today; what's next?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) rose for the sixth straight session today. The stock, which closed at Rs 63.04 on December 5, 2023 hit its lifetime high of Rs 106.95 on December 13 today. The PSU scrip has gained 69 per cent in six sessions.

IREDA shares rose 4.43% intraday to Rs 106.95 on BSE today. This amounts to a gain of 234.21% to the IPO price. The firm saw 108.96 lakh shares changing hands amounting to a high turnover of Rs 112.97 crore on BSE. Market cap of the firm rose to Rs 28,624 crore.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Immediate support will be at Rs 92 and resistance may be seen around Rs 110. The stock may see a trading range between Rs 85 and Rs 120 for next couple of months."

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DRS Finvest founder Ravi Singh suggested that the stock is likely to a see level of RS 120 in the near term.

AR Ramachandran from Tips2trades said, "IREDA stock price looks bullish on daily charts with next resistance at Rs 106. Allotted investors can hold buy positions till daily close below support of Rs 92 is not broken."

Shares of IREDA made a stellar market debut on November 29, listing at a 56.25% premium over the IPO issue price. IREDA stock listed at Rs 50 on BSE, a premium of 56.25% over the IPO issue price of Rs 32. The stock listed at Rs 50 on NSE.

The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The IPO was open for bidding between November 21 and November 23. The state-run PSU player raised a total of Rs 2,150.21 crore through the IPO route, which included a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 equity shares.

Also read: IREDA hits fresh all-time high as stock zooms 59% in just 3 days; is more steam left?

IDBI Capital Markets, BoB Capital Markets and SBI Capital Markets were the book running lead managers to the issue, while Link Intime India was the registrar for the issue.

The firm raised Rs 643.26 crore from 58 anchor investors including Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading, and Copthall Mauritius. The company allotted 20,10,19,726 equity shares at Rs 32 apiece to the anchor investors which include 13 mutual funds. These 13 mutual funds have applied through a total of 32 schemes in the IREDA IPO anchor book.

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.

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