IREDA shares in focus today on launch of QIP, check details

Shares of the Indian Renewable Energy Development Agency (IREDA) are in focus today as the state-run entity launched a Qualified Institutional Placement (QIP) aimed at raising up to ₹4,500 crore by offering shares to eligible institutions. The floor price for the QIP is set at ₹173.83 per share, reflecting a 1.7% discount from Thursday's closing price. The stock ended 1.4% higher at ₹176.5 in the previous session, showing a 10% rise over the past month, though still down more than 40% from their peak. Since its market debut in December 2023, IREDA has seen its stock price multiply nearly sevenfold from its IPO price of ₹32 per share, achieving highs beyond ₹200 before declining and later rebounding to a high of ₹310 per share.

The government retains a 75% stake in IREDA, while the number of retail shareholders has nearly doubled, rising from 13.5 lakh in December 2023 to 26.48 lakh currently. These retail investors now hold a 20.25% stake in the company. Despite this, domestic mutual funds have only minimal exposure, with a 0.23% stake, and Foreign Portfolio Investors hold 1.75%. IREDA's management has repeatedly stressed the need for growth capital to match the company's expansion, which motivated the QIP endeavour. "IREDA's management in earlier interactions has highlighted the need for growth capital to justify the pace at which the company is growing and had hence requested the government to take the QIP route to raise funds."

The QIP is seen as a strategic move to secure capital for future growth, aligned with IREDA's ambitious expansion plans. The recent stock performance indicates a fluctuating but promising investor interest, particularly among retail shareholders who have increased their holdings significantly. As the company progresses with its fundraising efforts, market watchers will closely observe how these moves impact IREDA's long-term trajectory and market positioning, especially in light of its current financial and shareholder structure.