IREDA shares rose 156% from IPO price in eight sessions; how strong is the uptrend?

Shares of Indian Renewable Energy Development Agency (IREDA) have delivered 156% returns in eight sessions compared to the IPO issue price of Rs 32. IREDA shares hit an intraday high of Rs 81.90 on BSE today, a 155.93% gain to the IPO price. On an intraday basis, share price of IREDA rose 15.59% in early deals. The firm saw 149.36 lakh shares changing hands amounting to a high turnover of Rs 117.01 crore on BSE. Market cap of the firm  rose to Rs 22,493.90 crore. 

Abhijeet from Tips2trades said, "Ireda stock price looks bullish on the Daily charts with next resistance at Rs 88.2. Allotted investors can hold buy positions till Daily close below support of Rs 73.5 is not achieved."

DRS Finvest founder Ravi Singh suggested that the stock may hit Rs 80 in the near term. Keep a stop loss placed at Rs 65, Singh mentioned.

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Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said "Support will be at Rs 65 and resistance may be seen above Rs 75. The stock may see a trading range between Rs 60 and Rs 85 for the next couple of months."

Shares of IREDA made a strong 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.  

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The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The share sale was open for bidding between November 21 and November 23. The state-run PSU player raised a total of Rs 2,150.21 crore via 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.  

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.  

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as an investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
 

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